Allan Gray is GRF’s buyer
CONFIRMATION: Bought 21% stake for R1bn
Citizen
22 May 2009

MONEYWEB

Allan Gray has confirmed that it was the mystery buyer of a 21% stake in Gold Reef Resorts. Gold Reef announced that Casinos Austria had sold its entire shareholding in Gold Reef, representing 60,2m shares to a "leading South African fund manager".

At the current Gold Reef price of R 17,50, this represents an investment of R1bn. Allan Gray was previously a shareholder in Gold Reef, although its stake was virtually insignificant to clients, given the size of its other assets.Josef Leutgeb, chief financial officer of Casinos Austria and Austria's representative on the Gold Reef board said: "As shareholders and management partners initially, we are proud of the value Gold Reef has created for shareholders. Gold Reef management have placed the business on a firm growth footing. "We are selling our holding in line with our stated strategy to be invested in entities over which we have significant management control. We wish Gold Reef and all its employees and shareholders all the best for the future."

The Gold Reef share price has nearly halved since a bid let by Ethos to buy the company at R34 per share was stopped by the Securities Regulation Panel.

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