Sun International proposes to increase its equity interest in Sibaya
JOHANNESBURG - Hotel group Sun International said on Monday it planned to increase its equity interest in subsidiary Sibaya.
It said this would be by way of a subscription for shares in Sibaya, Sibaya, which owns and operates the Sibaya Casino in Kwa-Zulu Natal, and a share repurchase by Sibaya of Dolcoast Investments 22.39 percent equity interest in Sibaya.
In addition, Sun International will acquire Dolcoast's 29.92 percent stake in Afrisun KZN Manco and 3.73 percent interest in National Casino Resort Manco.
"At present, Sun International has a 64.78 percent economic interest in Sibaya which will increase to 87.17 percent following the closing date ... of the proposed transaction," Sun International said in a statement.
It said aside from simplifying the shareholding of Sibaya, the proposed deal represented an opportunity for Sun International to increase its shareholding in Sibaya at an attractive historical multiple of 5.6 x EBITDA (earnings before interest, tax, depreciation and amortization) and would reduce cash leakage through reducing minority dividends.
- African News Agency (ANA)