Sun International this week announced that its Rights Offer, which closed on Friday 1 June, had been significantly oversubscribed, with total applications for Rights Offer shares at 187%.
The value of the total Rights Offer shares allocated was some R1.6-billion.
The Rights Offer pricing, at R57.82 per Rights Offer Share, was at the 10 day VWAP at the date of the announcement, which reflects the strong support the company received from its existing shareholders and the underwriter Value Capital Partners.
The excess applications applied for will be allocated equitably, taking account of the number of Sun International shares and rights held by each shareholder and the number of excess shares applied for.
Following the conclusion of the Rights Offer, the total issued share capital of the Company will increase to 136,730,964 Sun International ordinary shares of no par value each which includes 6,719,759 shares held by Dinokana. Of these, Sun International Limited effectively holds 4,947,087 shares, through its 73.6% shareholding in Dinokana.
Sun International CE Anthony Leeming remarked that the Rights Offer proceeds will be used to reduce debt to strengthen the group’s balance sheet. This will give management the time and headroom needed to focus on the business and strategy execution.”