Sun International announced its acquisition of Peermont Holdings, a key player in the hospitality and entertainment sectors, enhancing its digital business. The deal includes the Emperors Palace Resort.
Peermont's shareholders have approved the transaction with Sun International, known for Sun City Resort and The Table Bay Hotel. The acquisition involves all Peermont's shares and loan account claims.
Supported by 62.54% of Sun International's shareholders, the acquisition is expected to boost earnings and cash flow. Sun International, valued at R11 billion on the JSE, manages four major resorts and hotels in South Africa and operates nine urban casinos, including GrandWest and Carnival City, plus its online platform, SunBet.
Emperors Palace, a key part of Peermont's portfolio, offers gaming, hotels, a spa, dining, and entertainment in Gauteng.
Sun International said the acquisition provides a unique chance to acquire significant gaming and hospitality assets, enhancing its urban casino portfolio and online business.
The Peermont Group, with locations in South Africa and Botswana, has 3,349 slot machines, 152 gaming tables, and 1,636 hotel rooms.
Sun International has shifted over six years from a leveraged group in Africa and Latin America to a focused, cash-generative South African business. The addition of Peermont's land-based casinos, especially Emperors Palace, will enhance group earnings and cash flow.
CEO Anthony Leeming noted the purchase price is based on a R7.3 billion enterprise value, with Sun International taking on R4 billion in debt, bringing its total South African debt to over R13 billion.