Listed gaming and leisure group Sun International's hostile bid for Real Africa Holdings (RAH) received a boost from the country's Com- petition Commission yesterday when the commission recommended that the Competition Tribunal approve the merger without any conditions.

RAH's board has been fending off the R5,90-a-share bid by the country's largest gaming and leisure group, contending that fair value was at least R6,40 a share.

Sun wants to acquire the entire issued share capital of RAH, as the group would acquire RAH's minority stakes in a number of Sun International subsidiaries.

RAH director Danie Vlok said the group's opposition to the offer had always been based on the offer price and not on any competition or other regulatory concerns. "We all along have said the offer price of R5,90 was not fair," he said.

Vlok said the group was waiting for Sun International to announce the closing date for its offer, which he believed would be early next month, and also to announce the level of acceptances it had received.

Sun International has irrevocable undertakings to accept its offer from Allan Gray and Coronation Capital, representing nearly 50,9% of Real Africa Holdings? issued share capital. Allan Gray's backing does not preclude its clients from accepting a higher offer.

Sun International CEO David Coutts-Trotter said the group would announce the closing date of the offer when it had also received approval for the transaction from the country's gaming authorities.

Should Sun International's bid succeed, the group said it would dispose of RAH's investments outside hotels and casinos.

Sun International's shares rose 1,8% to R87 yesterday, while RAH's stock was up 0,8% to R5,15.

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