Harrah’s is ‚interested‘ in Gold Reef

Harrah’s Entertainment, the world’s biggest gaming company, has been studying a USD 1bn (GBP 510m) acquisition of South African casino and hotels group Gold Reef Resorts.

Harrah’s is believed to have expressed an interest in buying the business after the company said it had received approaches earlier in the year, according to sources.

It is thought Harrah’s was planning to merge Gold Reef with the South African operations of London Clubs International, which it bought for around GBP 280m last December.

It is not clear whether Harrah’s – which is in the process of being bought by US private equity firms TPG and Apollo – plans to press ahead and make a formal offer for Gold Reef.

One insider claimed that while Harrah’s had shown an interest in buying Gold Reef, it was no longer interested in doing so.

Other parties thought to have shown an interest in Gold Reef include private equity firm BC Partners and local gaming group Tsogo Sun.

Yesterday it was reported in South Africa that businessman and politician Tokyo Sexwale had teamed up with fellow businessman Vivian Reddy to launch a USD 1.4bn formal offer for Gold Reef Resorts.