February 22 - On Wednesday this week (February 20th 2008), Gold Reef CasinoResorts Ltd released a statement at the Johannesburg Stock Exchange (JSE) saying
that it is holding preliminary discussions with Tsogo Sun Holdings Ltd regarding
a possible takeover of the company.
Gold Reef Casino Resorts, which owns and operates
Gold Reef City Casino in
Johannesburg, seems eager for a buy out. It was suffered disappointment last
month after regulators scuppered lucrative acquisition plans by refusing
permission for Ethos Private Equity Ltd to take over the company.
Tsogo Sun, which lodged a complaint with regulators after Gold Reef Casino Resorts
accepted a R9,83 billion ($1.26 billion) offer from Ethos, without giving
sufficient consideration to Tsogo Sun Holdings' higher bid. Regulators found
Gold Reef Casino Resorts to be in breach of regulations.
If the acquisition of Gold Reef Casino Resorts by Ethos had gone through, it
would have been the second largest recorded private-equity takeover of a
publicly traded company in South Africa.
Gold Reef Casino Resorts also denied that they had compensated managers to
encourage them to accept the Ethos bid. Its share price fell by 2.6 per cent by
the close of trading on Wednesday.
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