Sun International acquires Peermont in £313m deal

Sun International has agreed a R7.3bn (£313m) deal to acquire hospitality and entertainment group Peermont.

Peermont’s flagship Emperors Palace Resort is included in the deal alongside the PalaceBet online brand, with Sun International pointing to the “large-scale benefits” the deal gives the company.

Sun International said Emperors Casino’s location near to the OR Tambo International Airport in South Africa offers a “gateway to high net-worth customers” from the rest of Africa and abroad.

It added the customer base will “drive opportunities for synergies with the rest of the group’s operations,” including its online business.

Sun said the deal will give rise to “alternative revenue streams” such as conferencing and hotels, while increasing the “scale of operations and market share in an attractive provincial jurisdiction with the highest gambling spend in South Africa.”

“The proposed transaction is envisaged to enhance the Group’s online business platform with opportunities for growth by extending Sun International’s proven SunBet management team’s reach across the Peermont Group’s assets,” the statement read.

“In addition, extending the Group’s omnichannel strategy across a scaled customer base unlocks operating leverage across revenues, marketing reach, payment processing efficiencies and game liquidity.

Sun International growth steers Peermont deal

Sun International said its recent strong operating results have led to “increased available capital” and the group subsequently began the search for “value accretive acquisitions.”

It said “certain opportunities” it has identified included the deal to acquire Peermont.

Sun generated EBITDA of R3.3bn (£140.7m) and R1.6bn (£68.2m) for 2022 and the six months until the end of June this year, respectively.