Sun Int to take over Peermont

SUN International plans
to acquire 100% of the
Peermont Group, in line
with its strategy to grow its
gaming portfolio.
The acquisition of
Emperors Palace provided
SI with an opportunity to
increase gaming revenue
from Gauteng, the provincial
jurisdiction with the highest
gambling spend in SA, the
group said in a statement.
Emperors Palace is one of
the largest casinos in SA
with an attractive financial
and operating profile. It
has an EBITDAM margin of
greater than 41%, which is
well above the SI average.
This diversification has
the effect of reducing SI’s
reliance on its GrandWest
property in the W Cape,
which represents 27% of the
group’s EBITDA, the group
said.
“Peermont has a number
of complementary attributes
that will enhance our group,”
said Sun International
ce, Graeme Stephens.
“These include the fact that
Peermont has established
and well-maintained
assets and infrastructure,
particularly Emperors Palace,
which also has extensive
hotel and conference
facilities.”
Also, the two groups have
reached an agreement to
settle Peermont’s objection
to SI’s Menlyn Maine project
in Tshwane. Peermont
raised objections to SI’s
proposed relocation of its
Morula licence from the site
in Mabopane to Menlyn.
In terms of a settlement
agreement between the
parties, this objection has
now been withdrawn.
The acquisition is still
subject to regulatory
approvals, which may take
from nine to 12 months.