Thom McLachlan

THE Securities Regulation Panel (SRP) confirmed yesterday it was in “discussions” with Gold Reef Resorts, following allegations by rival group Tsogo Sun of foul play in a private equity buyout.

SRP deputy executive director Viv Pitchers said the discussions had been instigated by the SRP, “following recent inquiries and in respect of press reports”.

He could not comment on whether the SRP would be holding a full-scale investigation. Pitchers would not say whether Tsogo’s allegation, that Gold Reef nonexecutive chairman Maxim Krok accepted R12m in compensation to approve a bid of R34 a share, were being looked into.

Gold Reef released a circular to its shareholders on Friday saying it was in discussions with the SRP regarding matters raised in the press about Tsogo Sun’s alleged previous offer of R34,50 a share.

Gold Reef said the offer never reached board level and was not final. Gold Reef CEO Steven Joffe said the SRP had requested Gold Reef to alert shareholders to the discussions in order to approve its announcement disputing Tsogo’s offer.

Joffe said discussions between Tsogo and Gold Reef last year about a possible merger had failed due to the “risk” that the competition authorities would call it anticompetitive.

He said Tsogo would not give an “iron-clad commitment” that it would sell certain casinos to mitigate this risk.