Afrisun stands by its rights

Posted On Wednesday, 06 September 2006 02:00 Published by
Rate this item
(0 votes)
Real Africa Holdings subsidiary Afrisun Leisure intends to enforce pre-emptive rights over shares in SunWest
By Ron Derby

Real Africa Holdings subsidiary Afrisun Leisure intends to enforce pre-emptive rights over shares in SunWest - the owner of GrandWest Casino - which Sun International wants to sell to empowerment partner Grand Parade Investments.

Sun International launched a hostile takeover bid for Real Africa Holdings earlier this year, but the R5,30-a-share bid was rejected by the board as "too cheap" in April. Sun International's wholly owned subsidiary, Sun International SA, wants to dispose of 536,800 O shares and 23,346 N shares in SunWest to Grand Parade Investments at R148,81 a share.

Real Africa Holdings said Afrisun had received external legal advice that Sun International's disposal of SunWest's shares to Grand Parade Investments had triggered pre-emptive rights contained in the shareholders' agreement concluded between Afrisun, Sun International and Grand Parade Investments.

Real Africa Holdings director Danie Vlok says that in terms of the pre-emptive rights, Afrisun is entitled to require that Sun International unconditionally offer to dispose of a minimum of 200,945 O shares and 8,739 N shares to Afrisun at the same price.

"If they sell shares in SunWest, through the shareholders' agreement we (Real Africa Holdings) have pre-emptive rights," he said.

Sun International CEO David Coutts-Trotter said Real Africa Holdings had no claim as there was no transaction. "The memorandum of understanding is a nonbinding memorandum setting out our intentions, which are subject to a number of conditions, most of which are unfulfilled at present".

Business Day
Publisher: I-Net Bridge
Source: I-Net Bridge

Please publish modules in offcanvas position.