Sunday, November 29News That Matters | Almost about all shares snapped up in Sun World’s R1.2bn rights offer

The Palace at Sun City Resort.

The Palace at Sun City Resort.

Sun World shareholders devour utilized for 94.52% of the shares that were on offer because the hotel group seeks to raise capital to halt afloat for the length of the Covid-19 pandemic, which has decimated the tourism and hospitality sector in South Africa.

The firm, which owns iconic resorts fancy the Sun City Resort, equipped on Tuesday evening that it obtained purposes for over R1.1 billion of the rights offer shares.

The firm became as soon as having a stumble on to raise R1.2 billion by issuing finest over 127 million current Sun World shares. It equipped the shares at R9.44 per fragment, a 25% discount on the 30-day moderate ticket at which the firm traded on the JSE when the offer became as soon as made.

Sun World acknowledged the underwriters to the rights offer would furthermore devour shares.

Other hotel groups similar to City Lodge devour furthermore long gone the rights offer path to take care of losses suffered on memoir of the pandemic. In City Lodge’s case, the rights offer is the principle equity capital elevate for the reason that firm listed on the JSE in 1992.

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