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Sun International in talks over potential acquisition

| By Robert Fletcher
South African gaming and hospitality business Sun International has revealed it has entered into discussions over a potential acquisition.
Sun International acquisition

Sun International did not disclose the identity or nature of the party in question. However, it did state that negotiations over the acquisition are ongoing.

The group also said that while there is no guarantee a deal will go ahead, it may have a material impact on its securities. As such, it advises shareholders to exercise caution when dealing in its securities until a further announcement is made.

Sun International shares initially dropped after the acquisition talks were announced. They have since begun to rebound and are currently trading at ZAR4,103 (£174/€200/$219) per share, up 0.07% on today’s (27 November) opening price.

iGB has contacted Sun International for more information on the talks.

Profit ticks up at Sun International in H1

News of the talks comes after Sun International published its first-half results towards the end of September.

Income for the six months to 30 June jumped 11.6% to ZAR5.78bn as the operator recorded growth across the business. This, it said, came despite a “difficult” economic climate and increased competition.

Key highlights in H1 included resorts and hotels income rising 26.9% to ZAR1.42bn. Urban casinos income was also up 4.2% to ZAR3.27bn, with casino contributing 91.8% of this total.

Group adjusted EBITDA for the half was ZAR1.57bn, 5.6% higher than H1 2022. In addition, overall profit for the period was ZAR485m, up by 41.0% from the previous year.

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