Sun International chief executive Anthony Leeming has slammed a public announcement that Chilean investment firm IPS has offered to buy a stake in the company. “It is surprising and unfortunate that IPS chose to go public with an unsolicited announcement that is neither an offer nor a firm commitment to make an offer,” he said in a statement. “They have not even discussed the offer with our major shareholders and had they done so, as we have, they would have realised their proposal has little chance of success.” Reuters reports that Value Capital Partners, the second largest shareholder in Sun International with a 20.23% stake, opposed the offer, with CEO Sam Sithole saying on Wednesday it “significantly” undervalued the company. – EditorÂ
Sun International rejects unsolicited proposals and pushed ahead with rights offer
[Johannesburg: 25 June 2020] Sun International rejects out of hand all reports that it is considering an unsolicited proposal made by Nueva Inversiones Pacifico Sur Limitada (IPS).
Commenting on reports, Sun International Chief Executive Anthony Leeming said, “It is surprising and unfortunate that IPS chose to go public with an unsolicited announcement that is neither an offer nor a firm commitment to make an offer. By sharing a non-offer with media they have created confusion and led to speculation in our share. They have not even discussed the offer with our major shareholders and had they done so, as we have, they would have realised their proposal has little chance of success.
Leeming confirmed that Sun has previously received several similar unsolicited, non-binding proposals from IPS. As with these previous proposals, the recent one lists stringent pre-conditions but fails to address any concerns raised by Sun International, including the significant and material litigation claim which Sun International has against IPS, as referred to in the IPS Announcement. The recent announcement was also highly irregular in that it was discussed in the media without first being first published on SENS.
“Our full focus right now is on pushing ahead with our proposed rights offer. Like most businesses the world over we have been negatively affected by the lockdown, but we are on the verge of reopening. We have a strong brand and quality offering so we are confident that we will soon regain lost ground.
Announcement by Nueva Inversiones Pacifico Sur Limitada (“IPS”)
Sun International shareholders (“Shareholders“) are referred to the announcement published by IPS through the press on Wednesday, 24 June 2020 (“IPS Announcement“) and are advised that aside from the irregular nature of the IPS Announcement which was not published on SENS, the IPS Announcement purports to express an intention to deliver to the Sun International board a firm intention to make a partial offer to Shareholders, provided that a multiplicity of stringent pre-conditions are met.
Shareholders are further advised that the IPS Announcement is neither an offer nor a firm intention to make an offer as contemplated under the Companies Act, 2008 and chapter 5 of the Companies Regulations, 2011.
The Sun International board has received several unsolicited, non-binding, indicative proposals from IPS containing varying terms and conditions, similar in nature to the IPS Announcement. Each proposal received from IPS has failed to adequately address the concerns consistently raised by Sun International, including the significant and material litigation claim which Sun International has against IPS, as referred to in the IPS Announcement. Despite not addressing any of the concerns raised by the Company, IPS saw fit to publish its unsolicited IPS Announcement in a manner which has unfortunately caused speculation in the Sun International share.
In the event that a firm intention to make an offer or an actual offer is ever made by IPS, then the Company will at that point respond appropriately, in accordance with law and market practice and in the best interests of its shareholders.
The Company remains focussed on its proposed rights offer and Shareholders are reminded in this regard of the general meeting of shareholders to be held at 09:00 on Monday, 13 July 2020, at the Maslow Hotel, corner Grayston Drive and Rivonia Road, Sandton, Gauteng, South Africa, or wholly by electronic participation should the Company so announce.
The board has accepted responsibility for the accuracy of the information contained in this announcement and have certified that, to the best of their knowledge and belief, the information contained in this announcement is true and that nothing has been omitted which is likely to affect the importance of the information contained in this announcement.
By Order of the Board
