Recently, Sun International had attempted to take over Peermont Group in South Africa, It had appeared that the deal would go through, however, the necessary approvals were not given, and the takeover bid fell flat. Losing the Peermont Group deal negatively affected the company's shares.
The entertainment hotel and resort company has now announced that Sun International has received regulatory approval for the Dreams SA deal it had been pursuing. Dreams SA is located in Chile. Sun International already has a major presence in the Latin America gaming industry, and will be increasing it substantially.
Sun International Increases Latin American Presence
The Dreams deal will see Sun International holding a majority stake in the company's properties. Sun International will hold a stake of 55% in Dreams. Once the deal has gone through, Sun International will hold a majority stake in what will be one of the largest Latin American gaming companies, offering 300 table games and about 7,000 slots.
Sun International, which is based in Johannesburg, Gauteng, owns 26 properties in Africa, including the well-known Sun City Casino Resort. Sun International also owns six casinos in Chile, four in Peru, one in Colombia, and one in Panama, to which will now be added a 55% stake in Dreams.
Graeme Stephens, the Sun International Chief Executive Officer, said: "This deal is a milestone in the history of Sun International. It gives the company great opportunities to achieve scale and reach outside Africa and diversify its earnings and risk."
Stephens further commented on Dreams and the Latin America expansion: "Dreams provides a strong presence in Chile, an expansion strategy that has seen growth in Peru, which is complementary to Sun International's expansion into Panama and Colombia, and, importantly, an executive management team that comes from Latin America, and has significant operational experience in the region."
Sun Dreams: Largest Gambling Group in Latin America
When the deal has been completed, the new entity will be known as Sun Dreams. Sun Dreams will be the largest gambling group in Latin America. The group will be managed by the existing Dreams executive team.
Sun International is the second largest hotel and casino operator in South Africa. After Chilean regulatory approval was granted, Sun International's shares went up by 0.37 percent.