Sun International weighs rights issue for rising debt
Asset sales are also on the cards, although CEO Anthony Leeming is reluctant to give more detail
Sun International is mulling over a rights issue to deal with its debt ballooning to R15.1bn for the half-year to end-June. Of that, R11.4bn is housed on its South African balance sheet and its Time Square development in Gauteng is partly to blame, with the final price of the new casino and hotel complex set at R4.2bn. Asset sales are also on the cards, although Anthony Leeming, who took over as CEO in May, was reluctant to give more detail. While Sun International was still "highly cash generative" and not overgeared, "there’s a lot of uncertainty around the political and economic landscape in SA. Given that outlook, we’ve taken a cautious approach to try and strengthen the balance sheet," Leeming said. As it is, the cost of Time Square meant Sun International was close to breaching covenants on its local debt, forcing it to renegotiate with its local lenders. The megacomplex — two floors of gaming, four years in the making and officially the country’s second-largest casino — has n...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.