The deal includes Sun International staff and black management. The deal forms part of Sun International's empowerment undertaking to the North West Development Corporation in 2003 and will take black ownership in the group's operations to over 25%.
Sun International said its new BEE partner would be newly created investment holding company Dinokana Investments.
Dinokana will pay a consideration of 392 million for its 7% interest in Sun International, valued at approximately 604 million rand.
The lead BEE partner in Dinokana will be Lereko Investments, with a 28.05% stake in Dinokana, resulting in an effective 1.96% interest in Sun International.
Other BEE parties are individuals and groupings with a link to the Northwest Province, and the Sun International Employee Share Trust, with a 43% shareholding in Dinokana, through which it will acquire an effective 3.01% stake in Sun International.
Dinokana will raise the 392 million rand via preference share funding from Nedbank Limited on market-related terms and conditions, the hotel and casino group said.
Two Dinokana directors, Lulu Gwagwa and Valli Moosa, SA's former Minister for Tourism and Environmental Affairs, have been proposed for appointment to the Sun International board of directors.
According to the company, the transaction is expected to lower its headline earnings per share (HEPS) by 3.7% to 514 cents from 534 cents before the transaction, while the weighted average number of shares in issue for adjusted HEPS will rise by 4.1% to 108.799 million from 104.5 million previously.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
