Sun International Engages in Potential Acquisition Talks
South African gaming and hospitality company Sun International has disclosed that discussions regarding its potential acquisition are currently in progress.
Although the group did not reveal the identity of the party involved or the specifics of the deal, it confirmed that negotiations about a potential takeover are ongoing.
Sun International also mentioned that although a deal isn't certain, the possibility of the gambling acquisition might significantly affect its securities. Therefore, shareholders should be cautious when trading its securities until another announcement is released.
The group initially experienced a drop in the value of its shares following the announcement of the acquisition talks. However, they have since started to recover and are presently being traded at ZAR4,103 (£174/€200/$219) per share, which was a 0.07% increase compared to yesterday’s (Nov.27) opening price.
Sun International was founded by Sol Kerzner and incorporated in 1967. The group possesses a range of assets in South Africa, including the renowned Sun City Resort near Rustenburg in the North West Province, The Table Bay Hotel in Cape Town, and online gaming platform SunBet.co.za. It currently owns about 42.5% of the South African casino market.
First Half Financial Results
The latest announcement follows Sun International’s recent release of its first-half results ending 30th June, which showed growth across its operations.
During the six months, the company recorded an 11.6% surge in income to ZAR5.78 billion. The company stated that it achieved this impressive feat despite the challenging economic environment and heightened competition.
Other key metrics reported in the HI trading update include a 26.9% increase in income from resorts and hotels to ZAR1.42bn. Urban gambling venues also experienced a 4.2% rise in income to ZAR3.27bn, with land-based casinos accounting for 91.8% of the total figure.