Sun Dreams SA acquisition talks terminated in Chile

In Chile and negotiations that were to have seen the firm behind the nation’s giant Casino Marina del Sol purchase up to a 50% stake in rival operator Sun Dreams SA have reportedly been definitively cancelled.

According to a Thursday report from G3Newswire, Sun Dreams SA was established in 2015 via a partnership between South African casino behemoth Sun International Limited and South American counterpart Dreams SA and has since gone on to open venues in Chile, Colombia, Peru and Panama.

Distracted dialogue:

Johannesburg-headquartered Sun International Limited reportedly holds a 64.94% stake in Sun Dreams SA, which is now the largest casino operator in Latin America, and had been engaged in talks about the possibility of offloading a substantial portion of this shareholding to the owner of Casino Marina del Sol.

Talks termination:

However, G3Newswire pronounced that the pair suspended negotiations in November after being unable to reach agreement on an associated memorandum of understanding and have now decided to conclusively end these discussions due to being unable to ‘agree on the points necessary to carry out the transaction’. The news domain cited local newspapers El Mercurio and La Tercera in reporting that the two casino firms had moreover not been able to ‘exchange the background or the documents necessary to carry out legal, tributary and labor due diligence processes.”

Continuing covenant:

Sun International has reportedly also been delayed in completing a separate transaction that is to involve Nueva Inversiones Pacifico Sur Limitada buying a 14.94% stake in Sun Dreams SA so as to take its shareholding in the Santiago-based casino operator up to 45%.

Reportedly read a statement from Sun International Limited…

“Shareholders are advised that to date the parties have not yet received approval for the proposed disposal from the casino regulator in Chile by the long-stop date of October 31, 2019. Sun International is engaging with Nueva Inversiones Pacifico Sur Limitada regarding an extension to this date.”