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September 4 - Casino group Gold Reef Resorts is to join the exodus of blue chip companies from
the JSE’s main boards after it said today that it had accepted a R11,4 billion
offer from a consortium led by Ethos Private Equity.
The consortium is made up
of Goldman Sachs and Gold Reef Resorts management, including the company’s existing
empowerment partners, which hold 25,1% of the casino group.
The buyout offer has been accepted by 80,5% of Gold Reef shareholders, provided
no competing offer of more than 10% higher than the Ethos offer is received. The
offer which amounts to R34 a share, is almost a 50% premium to the R22,90 a
share offer put on the table in a pre-cautionary announcement.
The deal is financed by several banks, including Goldman Sachs and Nedbank
Corporate and comes at a time when most companies have shied away from leveraged
buyouts, what after the sub prime debacle in the US has put the credit markets on
edge in recent weeks.
The casino group operates the Gold Reef City casino and theme park, south of
Johannesburg as well as the Golden Horse Casino outside Pietermaritzburg and the
Goldfield Casino near Welkom among others.
The deal is subject to the approval of the competition authorities as well as
the various provincial gaming boards. Read our
Gold Reef City Review
now.
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