- February 1, 2010
- Posted by: admin
- Category: Tsogo Sun Holdings
Shares in gaming group Gold Reef Resorts (GRR) surged 9% in the wake of speculation around a possible deal with empowerment giant Hosken Consolidated Investments (HCI).
Fin24.com reported at the weekend that cautionary notices from GRR and HCI last Friday evening set the tongues wagging in the gaming sector.
Although the cautionary notices were issued separately, the fact that HCI already holds a 23% stake in GRR led to speculation that the empowerment company was set to pitch for a bigger stake or outright control of the gaming group.
GRR finished at 2 100c on Monday, with trade worth more than R1m recorded. HCI, on the other hand, shed around 1% to settle at 6 685c.
While sentiment for GRR would obviously be buoyed by the chance of a buyout offer, sentiment for HCI would take into consideration that the empowerment company would probably need to “gear up” to clinch a bigger stake or take control of GRR.
HCI last year increased its stake in Gold Reef by buying out certain of the company’s empowerment shareholders.
GRR also saw a shareholder re-shuffle when Casinos Austria International Holding GmbH, sold its 20.6% shareholding in the gaming group to “a leading South African fund manager”. The fund manager was reportedly Allan Gray.
HCI’s main gaming focus lies in Tsogo Sun, which holds the Montecasino and SunCoast casinos as its flagship properties. GRR’s main casinos is at Gold Reef City, but the company owns an array of smaller venues.
Source: Fin24 – Marc Hasenfuss