Gold Reef - Disposal Of The 9.9% Equity Interest I
Gold Reef - Disposal Of The 9.9% Equity Interest In Johnnic Holdings Limited
Gold Reef Casino Resorts Limited
Incorporated in the Republic of South Africa
(Registration number 1989/002108/06)
Share code: GDF
ISIN: ZAE000028338
(`Gold Reef`)
DISPOSAL OF THE 9.9% EQUITY INTEREST IN JOHNNIC HOLDINGS LIMITED
Introduction
Shareholders are advised that Gold Reef has disposed of its 9.9% (16 499 321
shares) equity interest in Johnnic Holdings Limited (`Johnnic`) to a nominee of
Hosken Consolidated Investments Limited by way of a `book over` on the JSE on 1
July 2005 for a total cash consideration of approximately R161 million (`the
Johnnic share disposal`). The cash consideration will be used to fund future
potential acquisitions and growth within the group.
Nature of business of Johnnic
Johnnic is an investment holding company with interests in casinos, exhibitions
and property. Johnnic is listed on the JSE. Johnnic`s casino interests comprises
an effective 28% holding in Suncoast Casino and Entertainment World, a venture
with Tsogo Sun Holdings (Proprietary) Limited (`Tsogo Sun`) and an effective 19%
interest in Tsogo Investment Holdings (Pty) Limited which has a 51% interest in
Tsogo Sun. The exhibition business is operated through Gallagher Estate
Holdings Limited and the residual property interests are conducted through
Johnnic Properties.
Rationale for the Johnnic share disposal
Gold Reef has decided to exit its investment in Johnnic for strategic reasons.
Financial effects of the Johnnic share disposal
The impact of the Johnnic share disposal on Gold Reef`s net asset value and net
tangible asset value per share as at 31 December 2004, and on Gold Reef`s
headline earnings and earnings per share for the year ended 31 December 2004, is
positive, yet insignificant and has therefore not been disclosed.
Categorisation of the Johnnic share disposal
The Johnnic share disposal is a Category 3 transaction as defined in terms of
Section 9.5 (a) of the Listings Requirements of the JSE.
Johannesburg
4 July 2005
Corporate advisor and transaction sponsor
Absa Corporate And Merchant Bank - Corporate Finance
A division of Absa Bank Limited
Reg no 1986/004794/06
Sponsor
Nedbank Capital
Date: 04/07/2005 02:36:04 PM
Produced by the JSE SENS Department
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