Marc Hasenfuss Editor-at-large

Shares in debt-laden gaming and leisure group Sun International have bounced off a 2018 low of R54.33, with the market seemingly expressing optimism around a R1.5bn rights issue. Sun will pitch new shares at R57.82/share in a rights offer partially underwritten by turnaround/deep value specialist Value Capital Partners (VCP), which is already involved in counters such as PPC, Adcorp, Altron, Novus and African Phoenix. Clearly the participation of VCP has shortened the odds on a quick turnaround at Sun. Not too long ago more than a few market participants — aghast at the ominously slow start at Sun’s Time Square casino in Pretoria — were adamant that R1.5bn was not nearly enough fresh capital to ease the group’s R15bn debt burden. Some market watchers are still betting that Sun will hold another rights offer — this time deeply discounted — in the not too distant future. Others reckon the sale of smaller casinos and certain hotel properties might also be on the cards, leaving Sun to f...

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