Sun International - Development regarding sharehol
SUI
SUI
Sun International - Development regarding shareholding in SunWest
Sun International Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1967/007528/06)
Share code: SUI
ISIN: ZAE000070678
("Sun International")
Development regarding shareholding in SunWest International (Pty) Limited
("SunWest")
Sun International shareholders were advised in the business updates released on
the Securities Exchange News Service ("SENS") of the JSE Limited on 25 October
2005 and 3 May 2006 and the interim profit announcement dated 2 March 2006 that
Afrisun Leisure Investments (Pty) Limited ("Afrisun Leisure"), a subsidiary of
Real Africa Holdings Limited ("RAH"), claims it has a pre-emptive right over a
proportion of the shares sold to Grand Parade Investments Limited ("GPI"), a
shareholder in SunWest, in terms of an agreement concluded between GPI and Sun
International (South Africa) Limited ("SISA") in 2003. The sale of shares in
2003 increased GPI"s shareholding in SunWest on a facilitated basis to 20% and
significantly improved SunWest"s empowerment profile.
Afrisun Leisure has instituted legal proceedings against SISA, a wholly owned
subsidiary of Sun International, to void the 2003 sale of shares agreement or
in the alternative to seek damages in respect of a 5.5% shareholding in SunWest
in the amount of a maximum of R326.7 million based on RAH"s estimated market
value of the SunWest shares in dispute at June 2003.
Shareholders were advised in an announcement released on SENS on 5 May 2006 that
Sun International intends to proceed with a formal offer to acquire, through
SISA, all the RAH ordinary shares in issue at a price of R5.90 per share ("offer
price"). The board of RAH is of the opinion that the offer price undervalues
RAH notwithstanding the fact that Sun International has obtained the support of
a substantial number of RAH shareholders at the offer price of R5.90 per share.
SISA intends to defend the claim from Afrisun Leisure. Sun International intends
to deal with Afrisun Leisure"s quantification of any damages to which they claim
to be entitled in its formal offer documentation to RAH shareholders and
circular to Sun International shareholders, which are expected to be posted to
shareholders in due course. At this stage Sun International is of the view that
the damages claimed by Afrisun Leisure are materially incorrect.
18 May 2006
Date: 18/05/2006 05:34:03 PM Produced by the JSE SENS Department
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