Johannesburg – Sun International says its deal to sell off a 10 percent stake in SunWest International and Worcester Casino is now unconditional.
Earlier this month, Sun International said it and Grand Parade Investments were each selling a 10 percent stake in SunWest to Tsogo Sun, a competitor.
At the same time, the two gambling companies were selling a 10 percent stake each in Worcester Casino.
In a statement issued on Monday, the JSE-listed company says the deals are now unconditional as it has received confirmation from the Sun International Employee Share Trust that it had waived its pre-emptive rights in terms of the current shareholders agreement.
Tsogo will settle the R675 million price tag through the payment of 18 monthly cash instalments of R37.5 million. It has already made the first payment, says Sun International.
Grand Parade still has to get shareholder approval, and has until the end of June to do so.
In February, Sun International reported a 19 percent fall in half-year profit, which was in line with its own forecast. It blamed flat casino revenue growth at home for the decline.
Sun International said headline earnings per share slid to 332 cents for the six months to the end of December.
Poor economic conditions in South Africa resulted in revenue growth at casinos of only 0.6 percent, which Sun International said was well below inflation in the country where it still earns 80 percent of its revenue.
The company said its Monticello asset in Chile helped offset poor growth at home.
Sun International is also evaluating its R536 million investment in Nigeria.
IOL