Nueva Inversiones Pacifico expresses intention to acquire 50.1 percent of Sun International
Sun International shareholder Value Capital Partners opposes the bid, stating it's not enough.
Chilean investment company Nueva Inversiones Pacifico Sur (IPS) has approached Sun International’s board and expressed a “firm intention” to acquire 50.1 percent of the hotel group’s shares for R22 per share.
Sun International CEO Anthony Leeming told Fin24 that it has seen the letter published by IPS but that the hotel group has not received a formal offer yet to consider.
Sun International’s second-largest shareholder, Value Capital Partners (VCP) has already said that it will oppose IPS’ bid because the R22 per share is not enough. VCP, which owns approximately 20.23 percent of Sun International’s shares, said it will not allow any company to acquire the hotel group at “artificially depressed prices”.
VCP CEO Sam Sithole (pictured) said:
“While we are obviously pleased that other investors see the significant value in the business, as we do, we believe this proposed offer significantly undervalues Sun International, particularly when one considers that the price offered should include a control premium. We believe that the majority of the other shareholders of Sun International would be of the same view.”