MARC HASENFUSS: Sun International for the punters
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
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...
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