MIÉ 15 DE JULIO DE 2020 - 02:09hs.
South Africa

Sun International rejects approach from Chilean investors for 50.1% stake

Sun International, the owner of South Africa’ Sun City resort, has rejected an offer for a 50.1% stake in its business from Chilean investment firm Nueva Inversiones Pacifico Sur (IPS), which would have increased its participation from 22%. Sun’ second biggest shareholder, Value Capital Partners (VCP) with close to 20.23% of the shares, opposed IPS’ bid saying it wasn’t interested in selling at “artificially depressed prices.”

VCP CEO, Sam Sithole, said: “While we are obviously pleased that other investors see the significant value in the business, as we do, we believe this proposed offer significantly undervalues Sun International, particularly when one considers that the price offered should include a control premium.”

“We believe that the majority of the other shareholders of Sun International would be of the same view,” Sithole added.

Sun International has been affected by the coronavirus casino closures in South Africa, Chile, Peru, Argentina, Colombia and Panama.

“If the partial offer is approved, this interim liquidity support would significantly strengthen Sun International’s ability to weather the uncertainty of COVID-19 in its key markets, while protecting shareholder value and preserving Jobs,” IPS commented.

Source: GMB / G3 Newswire