Sun International Finalizes Peermont Group Acquisition Deal
LISTEN TO THIS ARTICLE:Sun International has signed an agreement with Peermont Group to completely acquire the hospitality and entertainment conglomerate.
The deal will see Sun International take over all assets of Peermont Group, including the Emperors Palace Hotel Casino Convention and Entertainment Resort, situated in Gauteng, South Africa.
Peermont Group’s land-based properties located across South Africa and Botswana generally account for 3,349 slot machines, 152 gaming tables, and 1,636 hotel rooms. Upon the completion of the deal, Sun International will be in charge of running these operations. According to the company, more than 62% of its shareholders have submitted written indications expressing their support and approval of the proposed purchase.
With this major gambling acquisition under way, Sun International can obtain the “world-class and highly generative Peermont business” and expand its customer base. The strategic location of Emperors Palace near OR Tambo International Airport will greatly help the operator in achieving this goal.
The deal will also enable Sun International to improve the offerings on its online business platform.
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.
Earlier Acquisition Talks
The deal comes days after Sun International informed its shareholders of a potential acquisition that could significantly affect its securities. At that time, the group didn’t disclose the parties involved or the specifics of the deal.
The timing of the Peermont Group purchase aligns with the earlier announcement of the company. However, it also suggested that Sun International would be the group to be purchased and not the other way round.
The group experienced a drop in its value following the acquisition talks. However, its shares have since recovered.
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