Sun International says Nueva downplayed the seriousness of their dispute
The group says its dispute with its Latin American business partner over the sale of a stake in the business they own is headed to arbitration in 2021
Casino and hotels operator Sun International said on Friday a recent offer from Nueva Inversiones Pacifico Sur for a majority stake in the group had downplayed the significant of an ongoing dispute between the two parties.
Nueva had said on Wednesday it would make a R1.5bn bid for a 50.1% stake in Sun, but had mentioned there was a dispute between the two regarding the sale by Sun of a 15% interest in Sun Dreams — the group's Latin American business — for about $86m (R1.5bn).
This was not completed as some conditions were not met by a deadline for the transaction, and the matter was headed for arbitration, Nueva said on Wednesday These details are subject to a nondisclosure agreement.
Sun International said on Friday the information provided by Nueva was “not accurate and underplays its significance”.
All the conditions had been fulfilled for the transaction, but after Sun moved to close the deal on December 3 2019, Nueva had pulled out, Sun said on Friday.
Sun has now referred the matter for arbitration, which is expected to take place in the course of 2021. The group said this was a major issue in accepting any offer from Nueva, and had also been raised by the group when Nueva previously made other nonbinding offers.
In morning trade on Friday, Sun International’s share was down 5.92% to R17, having fallen about 57% so far in 2020.