Nueva IPS offer to buy 50.1% stake in Sun

CAPE TOWN – Nueva Inversiones Pacifico Sur (IPS), the Chile-based partner of Sun International in South America, yesterday made a bid to acquire 50.1percent of Sun International through a partial cash offer of R22 a share.

The Nueva offer included a proposal to provide Sun International with interim liquidity support in the form of a bridge loan, which would strengthen the balance sheet and address liquidity concerns.

The group said the transaction would also help in underwriting at least 50.1percent of a R1.2billion rights issue, following completion of the partial offer.

IPS chairperson Claudio Fischer said in a statement: “Our proposed offer builds on the relationship that we have had with Sun International since 2016 and our aligned values. Like Sun International, we have a vision of providing world-class entertainment through prime infrastructure and excellence in service, coupled with a strong commitment to responsible and sustainable gaming.

The offer comes just hours after the hotel and gaming group yesterday announced a R1.2bn rights issue scheduled for August.