Global Courant 2023-04-18 19:43:00
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Sun International’s desire to own 100% of SunWest International and Sun Slots has become more complicated since GMB Liquidity Corporation became the majority shareholder of Grand Parade Investments (GPI). SunWest is 15% owned by GPI and Sun Slots is 30% owned by GPI. Sun International CEO Anthony Leeming stated that Sun International owned the majority of SunWest and 70% of Sun Slots, and that the company’s long-term goal was to fully own these assets. Sun International’s acquisition of 22.6% of GPI’s issued share capital provides a strategic position and ensures that the company is involved if a deal is struck or discussions about their sale begin. However, Leeming admitted that “it’s definitely going to be a bit more complicated in the long run” for Sun International to own 100% of these two assets. GPI shareholders became dissatisfied with the company’s performance and demanded changes, prompting Mohsin Tajbhai to step down as CEO on May 4.
SunWest International owns 100% of the GrandWest casino and entertainment destination in Cape Town, as well as the Table Bay Hotel on the V&A Waterfront, and Sun Slots is a leading operator of limited payout slots. GPI’s portfolio assets include a 15.1% interest in Golden Valley Casino and Hotel, located in the Breede River Valley in the Western Cape; a 26% stake in Infiniti Gaming Africa, a provider of integrated, scalable casino management and jackpot system solutions; an A-class office building on Heerengracht in the center of Cape Town; and a B-class industrial/warehouse building with on-site parking.
GMB’s offer to GPI shareholders became effective in November 2022, after GMB increased its stake in GPI to nearly 49%. GPI announced last week that GMB now owns 53.65% of the total number of GPI shares, after owning 21.1 million shares of the company, representing 4.49% of the total number of GPI shares , thus accepting GMB’s mandatory offer to shareholders. Greg Bortz, a gaming industry enthusiast and sole shareholder of GMB, was announced as GPI’s new CEO, and GMB has stated that there are currently no plans to delist GPI from the JSE.
Leeming stated that there have been no official agreements with GMB so far. These things will unfold as they should, so we need to participate and see where it leads and what Bortz’s long-term goals are. We think he’s involved in horse racing and there’s agreement on the other matters. We are not concerned about our current situation, but it is still too early to predict how it will turn out and how long it will last. Sun International sees no reason to rush into a transaction with SunWest and Sun Slots and would never do anything stupid.
GPI has paid out 100 cents in cash dividends and 37 cents in in-kind dividends over the past 18 months through the unbundling of Spur stock. In the five years since Mohsin joined GPI, the group’s debt has been reduced by more than R450 million, head office costs have been reduced by more than 40%, dividend payments have resumed and the share price discount has been reduced. of the net asset value (NAV ) has been reduced from 30% discount to 27% premium. GPI shareholders who accepted GMB’s offer received R3.33 per share, representing a 27% premium to NAV.
Sun International last month reported a 44% increase in revenue to R11.3 billion in the fiscal year ended December 31, 2022.
Sun International’s plan to own 100% of SunWest
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