Saturday, February 20, 2010

SABMiller To Merge Hotels, Casinos Unit With Gold Reef

JOHANNESBURG (Dow Jones)--SABMiller PLC (SAB.JO), one of the world's largest beer producers, Thursday said it will merge its South African hotels and casinos unit with rival Gold Reef Resorts Ltd. (GDF.JO) in exchange for a share in an enlarged company that will be worth about $2.7 billion.

The deal will create a "premier gaming and hotels company in South Africa" that London-based SABMiller said will rank among the largest listed gambling concerns in Europe, the Middle East and Africa.

Gold Reef, a Johannesburg-listed company that owns a number of casinos in the country as well as the Gold Reef City theme park south of Johannesburg, said it will buy all the shares in Tsogo Sun and issue roughly 889 million new shares.

SABMiller will swap its 49% stake in Tsogo Sun for a 39.7% share in the enlarged Gold Reef, which it said will have a market value of about 21 billion rand and retain a listing in Johannesburg.

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