HOTELS, GAMING AND ENTERTAINMENT
Peru move gives a leg up to Sun International
The Sun International share price enjoyed a much-needed pick up on Wednesday, gaining 4.11% to end the day at R52.68. The share reached a 12-month low of R49.51 last week following the release of grim interim results that showed adjusted headline earnings down 29% to 198c a share. Of greater concern to shareholders was the decision not to pay a dividend due to the group’s relatively hefty gearing level. The share has been on a steadily weaker trend since reaching a peak of R142 in February 2015, hit by sluggish local trading conditions and weaker-than-expected contributions from international operations in South America. The pick-up followed the release of a Sens statement outlining details of the acquisition of four gambling operations in Peru. The acquisition is being made through Sun International’s 55%-owned Latin American-based Sun Dreams. The 55% stake is set to increase to 65% in the near future. The Peru deal has a price tag of $26m, most of which is goodwill. Sun Internatio...
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