Sun International has entered into an agreement with Minor International (MINT) to dispose of a portion of its African assets, CNBC Africa reports. The collective net purchase consideration amounts to 664 million rand, or around $63 million.
“The investment by MINT will be a combination of an acquisition of existing shares from the relevant Sun International subsidiaries and the acquisition of an interest in the operating management agreements,” Sun International said. “MINT will also commit to invest into those operations that require refurbishment in the short to medium term.”
The South African hotel group will dispose of 80 percent of its Gaborone Sun, Kalahari Sands, Lesotho Sun and Maseru Sun and Royal Swazi and Ezulwini Sun assets, and 50 percent of its Royal Livingstone and Zambezi Sun asset.
It also indicated that it would continue to manage the casino operations situated at each of the African assets and that MINT would assume day-to-day management responsibility for the hotel operations.
However, this arrangement excludes its Zambia operations which will be jointly managed under a joint venture arrangement.
“The proposed transaction and the partnership with MINT in Africa are in line with Sun International’s strategy to optimise its capital allocation and resources,” said Sun International.
“The proposed transaction enables Sun International to remain invested in the African assets but with responsibility for the casino component only, as well as to partner with MINT in other African opportunities that have a casino element.”