Sun International has announced that it has entered into an agreement to complete the acquisition of hospitality and entertainment group, Peermont Group. This deal includes the Emperors Palace Hotel Casino Convention and Entertainment Resort, which is based in Gauteng in South Africa.
Over 62% of shareholders of Sun International have already provided written indications of their support for the proposed transaction.
Combined, Peermont Group’s physical properties offer 3,349 slot machines, 152 gaming tables and 1,636 hotel rooms in South Africa and Botswana.
The acquisition is seen as a “unique opportunity to acquire the world-class and highly cash-generative Peermont business,” with Sun International given the chance to increase its customer base significantly, especially as Emperors Palace is situated next to OR Tambo International Airport.
Sun International will also be able to enhance its online business platform through this acquisition of Peermont.
Sun International CE, Anthony Leeming, said: “Sun International has, over the last six years, repositioned itself from a highly geared hospitality and gaming group operating across several regions in Africa and Latin America to a simplified and locally empowered South African-focused, cash generative business with disciplined capital allocation principles. The Group’s strong performance over the past two years has increased available capital for the Group and put us in the enviable position of being able to consider value accretive acquisitions at an attractive point in the cycle.”
Towards the end of November, Sun International released a ‘cautionary announcement’ to shareholders, disclosing ongoing discussions and negotiations surrounding a potential acquisition.
