Share

Shares in Sun International plunge after Chilean bid

accreditation
The Palace at Sun City Resort.
The Palace at Sun City Resort.
Getty Images

Shares in Sun International [JSE:SUI] plunged over 7% in early morning trade after receiving an unsolicited bid by a Chilean investment company to buy a controlling stake in the owner of Sun City and other casino operations in the country.

Sun International put out a statement on Thursday hitting out at a purported offer saying it is "neither an offer nor a firm intention to make an offer," and has "unfortunately" caused speculation in the company's shares.

The group's shares were trading 7.2% weaker at R16.79 on Thursday morning, after gaining around 20% late on Wednesday evening. 

Nueva Inversiones Pacifico Sur (IPS) said in a statement on Wednesday evening that it approached Sun International's board with a "firm intention" to acquire 50.1% of the listed leisure group's shares. It is offering a cash price of R22 per share.

Sun International CEO, Anthony Leeming, told Fin24 on Wednesday evening the group had not yet received a formal offer from IPS.

Sun International said its board had received "several unsolicited, non- binding, indicative proposals from IPS containing varying terms and conditions, similar in nature to the IPS Announcement".

"In the event that a firm intention to make an offer or an actual offer is ever made by IPS, then the Company will at that point respond appropriately, in accordance with law and market practice and in the bestinterests of its shareholders."

Following the publication of the statement by IPS, Sun International's second largest shareholder, Value Capital Partners, said on Wednesday evening the bid price of R22 per share was not sufficient. VCP, which owns approximately 20.23% of the group's shares, said on Wednesday evening it would not allow any company to acquire the the group at "artificially depressed prices".

Last week, the company founded by legendary South African businessman Sol Kerzner, announced a R1.2 billion rights offer as it's operations have been badly affected by the nation-wide lockdown that began at the end of March.

- Additional reporting by Londiwe Buthelezi 

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.89
+0.2%
Rand - Pound
23.87
+0.1%
Rand - Euro
20.39
+0.2%
Rand - Aus dollar
12.33
+0.1%
Rand - Yen
0.12
+0.1%
Platinum
908.05
0.0%
Palladium
1,014.94
0.0%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders