Sun International confirms offer to Real Africa

Sun International today confirmed its offer to Real Africa Holdings (RAH) shareholders at 590 cents per share, following the RAH recommendation to RAH shareholders issued yesterday.

Sun International CEO David Coutts-Trotter said that this original offer price of 590 cents per share represented – at the time – a premium to the RAH share price of 14,6% to the RAH market price of 515 cents per share as at March 24 2006 and an 11,9% premium to the 30 day volume weighted average trading price of RAH for the period to March 24 of 527 cents per share.

„However, since the announcement of the offer, there has been a significant de-rating in the equity markets in general, with the JSE All Share Industrial Index decreasing by 11%.

„The Sun International trading price has decreased by 12% since 24 March 2006. At the same time, the RAH trading price has increased by 15% over this same period purely because of the SISA offer on the table.

„Had our offer not be in place, the RAH trading price in all probability would have decreased in line with the SISA trading price to approximately 450 cents per share.

„This in turn means that the 590 cents offer now represents a premium of some 31% and RAH shareholders should thus consider this offer very carefully.

„We are majority owners and managers of these businesses and have consequently conducted very detailed valuations.

„The two largest shareholders in RAH, both well versed in our industry, would also have done their own valuations and have concluded that our offer should be accepted.

„The transaction is subject to Competitions approval and, given that this is a relatively straightforward application, we are confident that the transaction should be finalised by the end of August,“ he said.