Sun International faces Americas listing pressure

A minority shareholder in Sun International’s Latin American (LatAm) company Sun Dreams has requested it list on the Santiago or New York stock exchange through an initial public offering (IPO).

And there’s a possibility it’ll have to comply, says new CEO Anthony Leeming.

“On condition that appropriate market conditions exist, Sun In- ternational has the option to list Sun Dreams or if it chooses not to do so, the minority shareholder who requested the IPO will have the right to exercise its put option against the company. If Sun Dreams conducts an IPO, the minority shareholders’ put options will fall away. Strategically the group would like to increase its interest in this business, subject to valuation and funding considerations,” states the Sens.

Leeming says it’s not Sun International’s preference, but the puts are against it, and it will need to list if an agreement can’t be reached.

“Within the next six to eight months we need to list or reach a deal. It’s all in discussions,” says Leeming. This will create share liquidity and will enable Eds – which holds 49% of Dreams – to exit its shareholding in the merged entity. Sun intends to maintain its shareholding above 50% in the event of a listing.

Sun International’s LatAm portfolio recently merged with the casino and hotel portfolio of Chile-based Dreams SA, forming the largest gaming company in Latin America.