A predatory bid to snap up Sun International has been rejected by the South African operator.
Chile-based investment group Nueva Inversiones Pacifico Sur (IPS) sought to snatch a 50.1 per cent controlling stake with an offer of R22 per share (€1.4), coupled with a bridging loan to assist Sun with short-term liquidity and help underwrite a proposed rights issue.
Value Capital Partners, the second largest shareholder in Sun with around 20.23 per cent, however rejected the offer as inadequate.
At the time of the offer, Sun’s shares were trading at R18.1 and the company said that it was not prepared to recommend acceptance of an offer that was at an "artificially depressed price".
Sun said that it was upset that IPS had gone public with its intention to make an offer, crating a situation that was confusing and leading to speculation on the Sun shares.