Johannesburg – Real Africa Holdings, a South African investment firm with gaming interests, said it rejected a bid from Sun International as too low.
Real Africa’s board has told Sun International that „the terms as proposed undervalue the company and are not acceptable,“ a stock-exchange statement released on Wednesday shows.
Real Africa is still open to talks, according to the statement. Sun International, South Africa’s biggest hotel operator, on March 27 made a cash offer of R5.90 a share for Real Africa.
Real Africa owns 66.2 percent of Afrisun Leisure Investments, which has minority interests in a number of Sun International’s South African casinos and hotels as well as stakes in two other casino resorts.
Real Africa shares were unchanged at R5.75 at 11.45am in Johannesburg, valuing the company at R2.1 billion. Stock in Sun International fell 5 cents, or 0.1 percent, to R94, for a market value of R11.1 billion.