The group also purchased further stakes in its Garden Route, Goldfields and West Coast Leisure (Club Mykonos) casinos, the company announces.
At the same time, Gold Reef has agreed to acquire Casinos Austria's right to a royalty of 0.375% of the gross gaming revenues of all of Gold Reef's casino operations.
In a statement, Gold Reef said it proposed to restructure ALI, which owns 15% of Akani Egoli, the operator of the Gold Reef City Casino and Theme Park, so that Gold Reef owned a 49.97% direct interest in ALI, thereby entrenching Gold Reef's 74.99% beneficial shareholding in Akani Egoli and a 25.01% BEE beneficial shareholding in Akani Egoli.
Casinos Austria, meanwhile, which owns a 29.2% stake in Gold Reef, had agreed to sell its 0.375% royalty to Gold Reef for 42.4 million rand, the company said. The acquisition was funded from Gold Reef's available cash resources.
Gold Reef had also agreed to increase its stake in its Mossel Bay-based Garden Route Casino by an additional 31.4% from 42.5% to 73.9%, while increasing the BEE beneficial shareholding in the casino to 26.1%.
As for its Goldfields Casino in Welkom, Gold Reef will lift its economic interest of 14.7% (10% stake) to a beneficial shareholding of 74.9%, while its BEE partner Akani Leisure Goldfields Investments (ALGI) will hold 25.1% of the casino.
Finally, regarding Casino Mykonos in the Western Cape, Gold Reef has acquired an additional 6% stake in the casino for 7.8 million rand in cash, lifting its shareholding 60.3% from 54.3% previously.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
