The decision for two of South Africa's largest casino operators to merge was inevitable, it has been claimed.
In February, Gold Reef Resorts and Tsogo Sun announced that they would be merging to create a combined gaming and hotel company estimated to be worth approximately ZAR21bn (£1.84bn). The move is expected to ensure that the new group will have better access to new sources of capital, such as a greater presence within the equity markets, and well as a strengthened balance sheet and lower levels of debt.
Tsogo Sun’s chief financial officer, Marcel von Aulock, told InterGaming that combining the two companies is in keeping with how South Africa’s casino industry has developed in recent years.
"Following the development of new casinos in South Africa over the past 10 years, some form of industry consolidation was always going to happen," he said. "Tsogo has been pursuing an acquisition of Gold Reef for some time as part of its growth strategy in the South African casino industry."
