Sun International Purchases Peermont Group in $400 Million Deal

On December 14, 2023, Sun International, a prominent casino and entertainment operator, announced a deal to acquire the casino and hotel group Peermont in South Africa for approximately R7.3 billion (US$400 million). This acquisition is seen as a unique growth opportunity for Sun International, as it will add the flagship Emperors Palace Resort to its portfolio. The Emperors Palace Resort is considered a highly cash-generative business and will enhance the company’s existing iconic Sun City casino and resort in South Africa.

The deal includes the integration of Peermont group’s eleven properties developed across South Africa and Botswana, as well as Peermont’s online sports and entertainment wagering site, PalaceBet. This expansion will further strengthen Sun International’s foothold in the regulated South African market, allowing the company to extend its online reach.

Emperors Palace is regarded as the main asset in this acquisition, as it is a leading gaming destination in Gauteng with four hotels and a wide range of leisure and entertainment amenities. The property’s strategic location near the OR Tambo International Airport is expected to attract high rollers from abroad, further enhancing its appeal.

With this acquisition, Sun International aims to leverage Peermont’s expertise in designing, developing, and operating integrated resorts to generate substantial revenues. CEO Anthony Leeming emphasized the addition of Peermont’s land-based casinos to the company’s portfolio, stating that it will enhance the quality of earnings and cash flow generation for the group.

Following the announcement of the acquisition deal, Sun International’s shares experienced a slight rise on December 18, reflecting a total growth of 13% in 2023. This further underscores the positive reception and potential impact of the acquisition on the company’s overall performance.