by Mateusz Mazur

Sun International Set to Acquire Peermont Holdings

Sun International has made a significant move in the gaming and hospitality sector by entering into an agreement to acquire all issued shares and loan account claims of Peermont Holdings Proprietary Limited, which includes the esteemed Emperors Palace Resort.

Sun International

Strategic Acquisition for Sun International

This acquisition marks a pivotal moment for Sun International, as it stands to gain a collection of substantial gaming and hospitality assets.

Emperors Palace Resort, situated near the OR Tambo International Airport, not only attracts high net-worth customers from Africa and beyond but also offers Sun International new opportunities for synergy across its operations, including hotels, resorts, and online sports and gaming businesses.

Aligned with Sun International’s strategic focus, this acquisition is expected to bolster its online business platform. The integration of Sun International’s experienced SunBet management team with Peermont Group’s assets is anticipated to drive growth and extend the reach of its omnichannel strategy.

This strategic move aims to optimize operating leverage across revenues, marketing reach, and payment processing efficiencies.

CEO Anthony Leeming’s Vision

Sun International’s CEO, Anthony Leeming, commented on the acquisition: “Sun International has repositioned from a highly geared group to a cash-generative, South African-focused business. The Group’s strong performance has enabled us to consider value-accretive acquisitions. Adding Peermont’s land-based casinos, especially the flagship Emperors Palace Resort, aligns with our focus on urban casinos and online growth. We foresee mutual benefits and efficiencies from the shared expertise of staff and management across both groups.”

Financial Details and Conditions

The purchase consideration is based on Peermont Group’s enterprise value of R7,300 million, less net debt and specific transaction costs, subject to adjustments.

The estimated transaction cost is around R3,236 million as of September 30, 2023. This acquisition is contingent upon approval from Competition Authorities, the Gauteng Gambling Board, and Sun International shareholders.

Sun International Chairman Sam Sithole has disclosed that around 63% of the group’s shareholders have already expressed their support for this transaction.

Our Comment on the Article

Sun International’s acquisition of Peermont Holdings represents a significant strategic expansion in the gaming and hospitality industry.

This move not only enhances Sun International’s asset base but also strengthens its position in the market by combining the strengths of two major industry players.

The acquisition promises to create a more robust, diversified entity capable of delivering enhanced value to shareholders, customers, and the broader gaming and hospitality sectors. Such strategic mergers are vital in shaping the future landscape of the industry, fostering growth, and enhancing competitive capabilities in a rapidly evolving market.

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