Sun International’s plan to purchase Emperors Palace has not received support from the Competition Commission.<\/p>\n\n\n\n
In December 2023, Sun International announced that it had agreed with the shareholders of Peermont Holdings Proprietary Limited to acquire all of the issued ordinary shares and any claims on loan account against Peermont Group.<\/p>\n\n\n\n
Peermont is the hospitality and entertainment group whose flagship property is the Emperors Palace Resort in Johannesburg.<\/p>\n\n\n\n
Sun International, which operates the Sun City resort, previously said that the acquisition represents a significant value proposition and will give the group the chance to acquire substantial gaming and hospitality assets.<\/p>\n\n\n\n
Although Peermont had a net enterprise value of R7.3 billion in December 2023, the deal would have less net debt and certain sellers\u2019 transaction costs and would be subject to capital expenditure and working capital adjustments.<\/p>\n\n\n\n
Sun International said that the deal would bring one of the largest, most cash-generative, high-quality casinos in a central metropolitan area.<\/p>\n\n\n\n
\u201cWith its unique proximity to the OR Tambo International Airport, Emperors Palace offers a gateway to high net-worth customers from the rest of Africa and abroad,” said Sun International in December 2023.<\/p>\n\n\n\n
“This customer base will drive opportunities for synergies with the rest of the Group\u2019s operations, including hotels and resorts, as well as the online sports and gaming business, creating large-scale benefits for Sun International.” <\/p>\n\n\n\n
\u201cThe proposed acquisition will further enhance the group\u2019s online business platform with opportunities for growth by extending Sun International\u2019s proven SunBet management team\u2019s reach across the Peermont Group\u2019s assets.\u201d<\/p>\n\n\n\n
Roadblock <\/strong><\/p>\n\n\n\n However, the group told shareholders that the Competition Commission has recommended that the Competition Tribunal prohibit the transaction. <\/p>\n\n\n\n “The detailed report containing the reasons and recommendations made by the Competition Commission to the Competition Tribunal will be reviewed and evaluated by the Company once received,” said Sun International.<\/p>\n\n\n\n “In the interim, the Competition Tribunal will begin its review and deliberation of the Proposed Transaction, which it may still approve despite the recommendation made by the Competition Commission.” <\/p>\n\n\n\n “Shareholders are reminded that the approval of the Competition Tribunal is a condition precedent to the Proposed Transaction.”<\/p>\n\n\n\n
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