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Gold Reef sale blocked

Feb 03 2008 12:53

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Johannesburg - South Africa's Securities Regulation Panel said on Friday that Gold Reef Resorts had contravened securities regulations, a decision which blocks a private equity group's R9.85bn buyout of the casino group.

The panel, which ensures that all deals are in line with South African company laws, said Gold Reef Resorts was in breach of four rules.

The panel said it would give full reasons for its decision at a later stage. Gold Reef was not immediately available for comment.

Shares in Gold Reef, which operates the Gold Reef City theme park and casino in Johannesburg and other casinos and hotels around the country, closed 13.69% down at R29.63.

Gold Reef said in September last year that a consortium, including South African private equity firm Ethos Private Equity and Goldman Sachs, will pay R34 per share for the group. The transaction has yet to be completed.

The casino group denied earlier this month that it had received another offer from rival Tsogo Sun Group.

 
 
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