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Casino merger hearings postponed

Dec 13 2010 13:08
I-Net Bridge

Johannesburg - The Competition Tribunal has postponed to next year hearings on the proposed merger between Gold Reef Resorts [JSE:GDF] and Tsogo Sun.

The competition body said hearings were not completed on December 10 2010 as scheduled and will resume on January 13 and 14 2011, with legal argument set for February 9 2011.

The proposed deal is dependent on the tribunal for final approval.

The two national casino operators have thus far managed to secure support from the Gauteng Gambling Board, KwaZulu-Natal Gambling Board, Mpumalanga Gambling Board and the Western Cape Gambling and Racing Board.

The Competition Commission recommended in November that the tribunal approve the deal, on condition that the merged entity sells off Silverstar Casino.

According to the commission, the merger could potentially lessen competition in the Gauteng casino market.

The deal will be effected through an acquisition by Gold Reef of the Tsogo shares held by Tsogo Investment Holding (TIH) and SABMiller [JSE:SAB] in exchange for the issue of new Gold Reef shares to form a merged company, which will be listed on the JSE.

SABMiller will exchange its 49% interest in Tsogo Sun for a 39.7% interest in the enlarged Gold Reef/Tsogo Sun business, which will continue to be listed on the JSE with an expected market capitalisation of about R21bn.




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