December 20 2023
Gambling and hotel group Sun International has entered into an agreement with the shareholders of Peermont, a hospitality and entertainment company which includes Emperors Palace Resort, to acquire all issued ordinary shares and any claims on loan account against Peermont.
Sun International’s flagship asset is Sun City.
The deal is worth R7.3bn and will see Sun International acquire a group of gaming and hospitality assets as well as one the largest most cash-generative, casinos in South Africa.
Being close to OR Tambo International Airport, Emperors Palace offers a gateway to high net-worth customers from the rest of Africa and abroad. This customer base will drive opportunities for synergies with the rest of the group’s operations, including hotels and resorts, as well as the online sports and gaming business, creating large-scale benefits for Sun International.
“Sun International has, over the past 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,” said Sun International CEO Anthony Leeming.
“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,” he said.
“The Peermont Group’s entrepreneurial management team has been a significant factor in its success and the shared expertise of the staff and management of the combined group will result in mutual benefits and efficiencies. Further, we are encouraged that the proposed transaction creates more opportunities for our staff to develop and grow within the combined group,” he said.
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