The money raised, which the firm hopes will be in the region of R1.5 billion, will be used to repay debt.
Sun International Ltd intends to offer 25.9 million shares in a rights offer. The firm hopes that in so doing it will raise around R1.5 billion, which will be used to repay debt.
The hotel and casino operator intends to offer the shares at R57.82 per rights offer share in the ratio of 25.34 rights offer shares for every 100 existing Sun International ordinary shares held on the record date of May 18 2018, according to Reuters.
“The proceeds from the rights offer will be used to repay debt, thereby creating head room in relation to relevant debt covenants,” the firm has said.
Value Capital Partners will partially underwrite the rights offer up to a maximum amount of R750 million, the company noted.
Pictured: Norman Basthdaw, Sun International CFO