In this year’s Financial Mail in South Africa, Sun International was ranked third out of the country’s top 200 companies in terms of its contribution to broad-based black economic empowerment (BEE). The gaming and hotel group has now made an offer to acquire the entire issued share capital of Real Africa Holdings (RAH), stating that the transaction could enhance the BEE status of Sun International.

The company has submitted its offer of R5.90 (US$0.94) for each RAH share with an April 7 deadline, a bid with a R2.2 billion (US$350.5 million) value. Over one quarter of RAH shareholders have agreed to the offer, as has the fund manager with 25% of RAH voting rights. Sun International considers the proposed acquisition to be a good investment opportunity as there are now limited expansion possibilities in the South African gaming market.

RAH has a 90% economic interest in Afrisun Leisure Investments, a company that holds minority interest in some of the Sun International subsidiaries. If the offer proceeds then RAH will become a wholly owned subsidiary of Sun International and removed from the JSE listings. The transaction, due for completion in August, will be contingent upon approval from the relevant regulatory authorities and gaming boards. (E-03.28.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage