By Thom McLachlan

The Securities Regulation Panel (SRP) says it has not been approached to investigate whether an alleged prior bid for Gold Reef Resorts by rival group Tsogo Sun was thrown out to the detriment of minority shareholders, but says it has not ruled out its own investigation.

A Gauteng Gambling Board hearing into Gold Reef Resorts’ buyout takes place on Thursday.

“To my knowledge, no one has approached us to look at the matter, but that is not to say we would not investigate in our own right,” SRP deputy executive director Vivian Pitchers.

A private equity consortium led by Ethos Private Equity and incorporating management is in the last stretch of securing approval for the buyout of Gold Reef at R34 a share.

Rival gaming group Tsogo threw a spanner in the works last week, saying it made a prior offer to major shareholders of R34,50 in August. Tsogo objected to the merger to the Gauteng Gambling Board, accusing key Gold Reef executives, including executive chairman and major shareholder Maxim Krok, of taking R7,2m in compensation for accepting the lower deal. It alleged that Richard Moloko, the black economic empowerment representative, had been given a substantial discount for the shares reinvested in the new private company.

Gold Reef CEO Steven Joffe said yesterday “no offer of R34,50 was received by the Gold Reef board” and said he could not speak on any offers made to Gold Reef shareholders directly. He also said management was not involved in the decision to accept the private equity offer because of its consortium involvement.

Tsogo’s group strategic planning director, Marcel von Aulock, said the company would consider pursuing the matter with the SRP but was focusing on the gambling board hearing on Thursday.