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Bidders Expected for Global Resorts Assets

26 May 2003

SOUTH AFRICA – As reported by the South Africa Business Day: "Potential bidders are expected to be lining up for the hotel and casino assets held by Global Resorts after last week's confirmation that the deal with a black empowerment consortium announced last December has hit funding problems.

"Aquila Growth and RMB Holdings, two of the biggest shareholders in Global Resorts, announced last Wednesday that certain conditions precedent to the deal had not been met within the allotted timeframe.

"However, Metallon Corporation, the black empowerment company headed by Mzi Khumalo that accounted for the major stake in the bidding consortium, said negotiations were still taking place. It said the problem had arisen in negotiations with Park Place Entertainment, which was one of the shareholders in Global Resorts' Caesar's Gauteng. As part of its funding requirement, Metallon must secure 100% of Global Resorts.

"…Now the deal with Metallon has been shelved and the owners of the group have shown they are open to offers, a number of other parties are likely to reiterate an interest in Global Resorts' assets.

"…Industry analysts and insiders canvassed on Friday had little concrete information about potential new bidders. One analyst said Global Resorts' assets were valuable and it would be interesting to see what price they fetched.

"…One company that was mentioned as likely to be interested was Casinos Austria, the Austrian gaming group that last year took a 17% stake in Gold Reef Casino Resorts and since has raised that stake to 31,6%…"

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