Johannesburg - The merged entity between the Gold Reef Resorts [JSE:GDF] and Tsogo Sun Holdings will take effect from February 24, which will result in the existing Gold Reef listing on the JSE being amended to reflect the enlarged issued share capital and the creation of the enlarged group, Tsogo said on Friday.
The merged entity - to be repositioned as both a hotel and gaming company - will have a new set of shareholders.Jabu Mabuza
will be CEO and Marcel von Aulock will become chief financial offer, while Rob Collins will become executive director. The new company will be known as Tsogo Sun Holding.
"The transaction was structured so as to enable Gold Reef shareholders and the former Tsogo shareholders to benefit from the earnings, geographical and market segment diversification achieved through exposure to the respective portfolios of assets and income streams of Gold Reef and Tsogo," it said.
The Tsogo board, which comprised a quorum of the then proposed board of directors of the merged entity, confirmed last year that the working capital available to the merged entity and its subsidiaries was sufficient for ordinary business purposes for at least 18 months from the date of the directors' resolution passed on August 5 2010.
A dividend cover of about two times will be adopted as the targeted dividend policy, which will be reviewed periodically.