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South Africa’s Sun International to issue 127 mln shares in rights offer

PUBLISHED: Wed, 15 Jul 2020 08:20:31 GMT

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JOHANNESBURG (Reuters) – South Africa’s Sun International will tap shareholders for funds at 9.44 rand a share in a 1.2 billion rand ($71.48 million) rights issue, the hotel and casino owner said on Tuesday.

The owner of Sun City resort will use the rights issue funds to improve its short to medium-term liquidity and strengthen its balance sheet as the coronavirus restrictions hit its operations.

The company will offer 127 million shares at 9.44 rand each, representing a 25% discount, it said in a statement.

($1 = 16.7877 rand)