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South African giant buys competitor

Johannesburg-based Sun International Ltd., owner of the Sun City resort, announced it will buy local rival Peermont Global for 8 million to add leisure operations and increase gambling sales. The purchase will allow Sun to “undertake larger developments and acquisitions internationally,” officials said. Founded by South African hotel magnate Sol Kerzner, Sun is South Africa’s biggest hotel and casino operator by number of markets, with 27 resorts across Africa and the Americas.

Founded in 1995 under the name Global Resorts, the group was rebranded Peermont Global in 2003. It was purchased in a private equity-led buyout by a consortium led by Mineworkers Investment Company. Peermont owns the Emperors Palace resort, near Johannesburg, with 667 rooms and 1,724 slots. The company also operates a portfolio of gaming and hospitality businesses in South Africa and Botswana, owning nine casino resorts, three hotels and one casino.

Sun International’s Chief Executive Graeme Stephens said, “Emperors Palace is one of the largest casinos in South Africa, with an attractive financial and operating profile. Peermont has a number of complementary attributes that will enhance our group. This acquisition will enhance Sun International’s position and scale as a leading hotel, resort and gaming operator, which in turn positions it well to undertake larger developments and acquisitions globally.” Stephens added Sun International’s medium-term objective is to “create a portfolio of fewer, larger, quality assets.”