Sun International Signs Proposal to Acquire Peermont Group, Expanding Casino Portfolio
SUN INTERNATIONAL ADVANCES IN ACQUISITION OF PEERMONT GROUP, SET TO EXPAND CASINO PORTFOLIO AND UNLOCK GROWTH OPPORTUNITIES. STRATEGIC MOVE ALIGNS WITH ONLINE BUSINESS EXPANSION AND ENHANCES FINANCIAL DYNAMICS.
Sun International has officially inked an agreement outlining the intent to acquire Peermont Holdings, a hospitality and entertainment giant. The deal encompasses all shares and loan claims against Peermont, marking a significant strategic move for Sun International.
In a notable shift, Sun International is gearing up to bolster its gaming and hospitality assets through the proposed acquisition of Peermont Group. This potential move includes gaining control of the renowned Emperors Palace Resort, a major player in the casino landscape conveniently located near OR Tambo International Airport.
Charting New Horizons with the Proposed Acquisition of Peermont Group
Emperors Palace’s strategic location positions Sun International for a substantial influx of high-net-worth customers from Africa and beyond. This sets the stage for synergies across the Group’s operations, spanning hotels and the burgeoning online sports and gaming business.
Accelerating Online Growth
Aligned with Sun International’s strategy, the proposed acquisition aims to fortify the online business platform. The SunBet management team’s reach will extend across Peermont Group’s assets, driving growth opportunities. This move aligns seamlessly with the omnichannel strategy, promising operational leverage and enhanced game liquidity.
Sun International’s CEO, Anthony Leeming, emphasizes the Group’s transformative journey towards a more streamlined, South African-focused business. The potential addition of Peermont’s casinos, anchored by Emperors Palace, is poised to elevate earnings and cash flow, aligning with Sun International’s commitment to large urban casinos.
Strategic Intent and Entrepreneurial Prowess
Leeming underscores the strategic intent to concentrate on large urban casinos capable of driving value-enhancing strategies. The entrepreneurial prowess of Peermont Group’s management is recognized as a key factor in its success.
Navigating Financial Dynamics
The proposed cash consideration for the acquisition is pegged to an enterprise value of R7,300 million for Peermont Group. With strong recent performance and financial stability, Sun International aims to swiftly conclude this transaction, ensuring a dividend pay-out and benefiting its South African shareholder base.
Navigating the Path Forward
Pending approval from relevant authorities and shareholders, Sun International Chairman Sam Sithole expresses confidence in shareholder support. The combined group emerges as a compelling equity story, offering increased scale, greater enterprise value, and enhanced visibility in capital markets.
About Peermont Group
Founded in 1995, Peermont Group has excelled in integrated resort development, owning and operating hotels, casinos, convention centers, and more. The Emperors Palace Hotel Casino Convention and Entertainment Resort stands as a flagship gaming destination in Gauteng, embodying the Peermont Group’s commitment to excellence.
