Investors are 50-50 partners in Latin American casino group Sun Dreams
In a press release, South African casino group Sun International Ltd. has referred to the announcement published in the press by Chilean group, Nueva Inversiones Pacífico Sur (IPS) on Wednesday, 24 June 2020, making an offer of about 1.5 billion Rand (US$86 million) equivalent to 22 rand a share for a 50.1% stake in Johannesburg-based casino hotels group. IPS are investors in Latin American casino group Sun Dreams where Sun International owns 50%.
Advising shareholders, Sun International’s press release states that, “aside from the irregular nature of the IPS Announcement, which was not published on SENS, the IPS Announcement purports to express an intention to deliver to the Sun International board a firm intention to make a partial offer to Shareholders, provided that a multiplicity of stringent pre-conditions are met.
“Shareholders are further advised that the IPS Announcement is neither an offer nor a firm intention to make an offer as contemplated under the Companies Act, 2008 and chapter 5 of the Companies Regulations, 2011.
“The Sun International board has received several unsolicited, non-binding, indicative proposals from IPS containing varying terms and conditions, similar in nature to the IPS Announcement. Each proposal received from IPS has failed to adequately address the concerns consistently raised by Sun International, including the significant and material litigation claim which Sun International has against IPS, as referred to in the IPS Announcement. Despite not addressing any of the concerns raised by the Company, IPS saw fit to publish its unsolicited IPS Announcement in a manner which has unfortunately caused speculation on the Sun International share.
“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 best interests of its shareholders.”