LONDON (MarketWatch) — Ethos Private Equity said Tuesday that South Africa’s Gold Reef Resorts Ltd. (GDF.JO) has agreed to a 11.4 billion rand ($1.6 billion) buyout by its consortium, which also includes Goldman Sachs Group Inc.

The offer of ZAR34 per share is at a 48.5% premium to the pre-cautionary price of R22.90 as at March 8, 2025 and is one of the largest ever leveraged buyouts in South Africa.
The consortium also includes Gold Reef management and the company’s existing black economic empowerment shareholders, which have a 25.1% stake in the South African gaming and entertainment company.
Ethos said that the buyout is backed by fully committed financing provided by a cluster of banks, including Goldman Sachs and Nedbank Corporate, a division of Nedbank Ltd. (NED.JO).
The transaction is one of very few leveraged buyouts to be completed since the volatility in the credit markets slashed the availability of debt.
Several companies have postponed or pulled sales as the cost of leverage will make it difficult for potential buyers to meet sellers’ earlier price expectations. Some 80.5% of existing shareholders of the company have irrevocably undertaken to accept the offer in respect of their entire shareholdings, subject to no competing offer being received that is at least 10% higher than ZAR34.00 a share.
Gold Reef operates the Gold Reef City Casino and Theme park in Johannesburg and is developing the Silverstar Casino on the West Rand, both in Gauteng Province.
It also operates the Golden Horse Casino in Pietermaritzburg, the Garden Route Casino, the Mykonos Casino at Langebaan, the Goldfields Casino, and has a shareholding in the Queenstown Casino, which is currently under development.
The offer is still subject to certain conditions, which include approval from the relevant Provincial Gambling Boards and the Competition Commission.