Real Africa Holdings Ltd. (RAH), a South African company with interests in gaming and tourism, rose the most in four months after Sun International Ltd. offered to buy shares in the company it doesn’t already own.
The stock added as much as 4 percent, the biggest intraday advance since April 28 and its first gain in 10 days, to 3.90 rand. It was trading at 3.80 rand as of 2:51 p.m. in Johannesburg, giving Real Africa a market value of 1.4 billion rand ($200 million). Sun International climbed 1.4 percent to 87.24 rand for a market value of 9.7 billion rand.
Sun International, the second-largest hotel and casino operator in South Africa, offered to buy 30.6 percent of Real Africa for 4.08 rand, Real Africa said in a statement today. Sun International wants to buy Real Africa to simplify the structure of its investments in South Africa, Chief Executive Officer David Coutts-Trotter said in an interview yesterday.
Sun International, which according to Bloomberg data owns 63 percent in Real Africa, is seeking to buy the 30.6 percent stake it doesn’t already own from Grand Parade Investments Ltd. (GPL)
The transaction follows a deal between Grand Parade and Sun International in which Grand Parade cut its holdings in SunWest International Ltd., which operates the GrandWest and Table Bay Hotel, and the Golden Valley Casino and Lodge in the Western Cape.
To contact the reporter on this story: Sikonathi Mantshantsha in Johannesburg at firstname.lastname@example.org