Marc Hasenfuss Editor-at-large

Gaming giant Sun International can’t be too stressed about its debt levels, seeing as it has decided to push up its stake in the cash-spinning Sibaya casino in Durban. Last week Sun agreed to repurchase the stakes held by Dolcoast Investments SPV — as well as its shares in the provincial and national management companies — for R540m. This means Sun’s 64.78% economic interest in Sibaya will shift up to 87.17%.

The deal looks a decent one for Sun, and well worth taking a smidgen more gearing. Sun will secure the additional stake at an effective historical multiple of 5.6 times ebitda (earnings before interest, tax, depreciation and amortisation) — which is surprising, considering the casino’s consistent performances over the years.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now