Sun goes to court with Kersaf dispute

JOHANNESBURG – As the war between New York-listed Sun International Hotels and locally listed hotels group Kersaf hots up, Kersaf confirmed yesterday that Sun International has instituted legal proceedings against the group and its subsidiaries in the New York Supreme Court.

Sun International, which operates casinos and resorts in the Bahamas, Indian Ocean and Dubai and derives income from the Mohegan Sun in the US state of Connecticut, is suing Kersaf for alleged fraudulent conduct.

It is seeking damages and other relief for breach of contract, tortious (injurious) and wrongful interference with prospective business relations and improper use of confidential information.

The international hotelier claims that Kersaf, which holds a 21,4 per cent effective interest in Sun International, breached an agreement that it would not engage in business outside of mainland Africa by allegedly engaging in impermissible activities in Greece, Mauritius and Dubai.

Confirming yesterday that legal proceedings had been instituted against it and its subsidiaries – Royal Resorts Holdings and Sun International Management – Kersaf charged, however, that a summons it had received on Friday was incomplete.

It also accused Sun International of resorting to what it called “the unfortunate tactic” of seeking to embarrass Kersaf by “procuring the publication in the South African weekend Press of one-sided allegations contained in the summons; and not affording Kersaf the opportunity of consulting with its advisers and responding to the allegations made”.

However, the company said it was confident that it had made sound and proper defences to the claims.

A further announcement would be made in due course, it added.

©Business Day