South Africa's Sun Intl. to buy Peermont in $775M deal

South African hotel chain Sun International has announced plans to take over casino resort group Peermont for nearly 9.5 billion rand or nearly US$775 million. Peermont operates a portfolio of gaming and hospitality businesses in SA and Botswana and owns nine casino resorts, including its flagship Emperors Palace casino resort in Johannesburg.

To fund the acquisition, Sun intends to roll over nearly 3.9 billion rand of Peermont's senior debt while taking on a fresh facility of about 575 million rand, it said in a filing to regulators.

As Reuters reports, Sun said it would explore disposal of some small Peermont assets after closing the transaction. Should a deal to sell any before to the transaction's close be reached, then Sun's funding requirement will be reduced, it said.

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

 

Suggested Articles

British hotels to adopt ‘points-based’ system for continental holidaymakers, according to Robin Sheppard

Edyn has acquired a site forming part of the University of Cambridge’s development of Eddington, which will become the latest location for its boutiqu

Dalata’s deputy CEO told us that the group was very much focused on growth in the UK as it expanded outside Ireland.