| Mon 29 Sep 2003, 15:40 | | Announcement Regarding The Acquistion Of A |
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Gold Reef Casino Resorts Limited - Announcement Regarding The Acquistion Of A
Further Shareholding In Pinnacle Point Casino (Proprietary) Limited ("Ppc")
Gold Reef Casino Resorts Limited
(Incorporated in the Republic of South Africa)
(Registration number 1989/002108/06)
Share code: GDF
ISIN: ZAE000028338
("GoldReef")
Announcement Regarding The Acquistion Of A Further Shareholding In Pinnacle
Point Casino (Proprietary) Limited ("Ppc")
ACQUISITION
GoldReef has acquired a further 32.5% interest in the shares ("shares") in and
shareholders" claims against PPC ("the acquisition") from Avontuur Estate
(Proprietary) Limited, Avontuur Consortium, Somerset Trust, Avontuur Estate 2
(Proprietary) Limited, Annford Investments (Proprietary) Limited and Dual Intake
Investments (Proprietary) Limited with effect from 19 September 2003 ("effective
date"). PPC owns and operates the Garden Route Casino in Mossel Bay.
RATIONALE FOR THE ACQUISITION
GoldReef currently holds a 10% interest in PPC. Following the acquisition the
interest will increase to 42.5%. This increase is in line with GoldReef"s
strategy to increase its presence in the Garden Route area. The acquisition will
have no material effect on GoldReef"s earnings or net asset value in the short
term.
CONSIDERATION FOR THE ACQUISITION
The consideration for the shares and claims is R11.3 million and R20.5 million
respectively, amounting to a total consideration of R31.8 million which will be
financed out of operating cash flow. The consideration for the shares is payable
in three equal interest free annual installments which commenced on the
effective date. The consideration for the claims is payable in four equal annual
installments, commencing on the first anniversary of the effective date.
Interest will be payable on the reducing balance at the prime bank overdraft
rate ruling from time to time.
CATEGORISATION OF THE ACQUISITION
The acquisition is categorised as less than a category 3 transaction in terms of
section 9.5 (a) of the Listings Requirements of the JSE Securities Exchange
South Africa. This announcement is made in order to provide information
regarding the ongoing activities of GoldReef.
GOLD REEF CATEGORISATION
Inputs
Shares in issue 217,860,159
Other
Total issued share capital 217,860,159
Closing price on 26 September 4.75
Market cap of GRCR at 25 Sept 1,034,835,755.25
Consideration for Pinnacle Point Casino shares 11,266,667.75
Consideration for Pinnacle Point Casino claims 20,480,000.00
Total consideration 31,746,667.75
Categorisation in terms of Section 9 of JSE Listings Requ"s
1)
Pinacle Point Casino
Market cap method
Acquistion of Pinnacle Point Casino
a.
Market cap of GRCR at 26 Sept 1,034,835,755.25
Value of Pinnacle Point Casino acquistion 31,746,667.75
% ratio 3.07%
Cash consideration
Total consideration Cash Value in shares
Checked to agreement
Pinnacle Point Casino 26,000,000 26,000,000 0
0
Total 26,000,000 26,000,000 0
Johannesburg
29 September 2003
Sponsor Attorneys
Nedbank Corporate Werksmans Inc
Date: 29/09/2003 03:37:56 PM Supplied by www.sharenet.co.za
Produced by the JSE SENS Department
