Sun International to acquire added stake in Monticello - CNBC Africa

Sun International to acquire added stake in Monticello

Southern Africa

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Sun International is a leisure and gaming group. PHOTO: Getty Images

The purchase consideration is expected to be approximately 114 million US dollars or 1.2 billion rand. In addition, Sun International will acquire shareholder loans and cash for approximately 32 million US dollars or 340 million rand.

“The acquisition of this additional stake is in line with our stated intention to grow our presence in Latin America and in particular Chile, which has a well regulated gaming industry and good growth prospects,” said [DATA SUI:Sun International] chief executive Graeme Stephens.

(READ MORE: Sun International affected by poor casino revenue)

“It provides us with control over a great asset and a free hand to use and incorporate it into our wider strategy for Latin America.”

Stephens also stated that the deal would provide an opportunity for the company to increase its exposure to an asset that is the premier gaming property in Chile and one of the finest on the continent.

The leisure and gaming group currently owns an effective 44.2 per cent in Monticello, bringing its equity interest in the casino to 98.9 per cent following this acquisition.

It is expected to acquire the effective 44.2 per cent held by Novomatic AG and an additional 10.5 per cent held by minority shareholder, Chilean Enterprises, and has also extended an offer on the same terms to acquire the remaining 1.1 per cent interest.

(READ MORE: Afrox and Sun International sign 55 million rand deal)

“We will continue to pursue other opportunities – either acquisitions or greenfields developments – in countries within LatAm that meet our investment and risk criteria,” said Stephens.

The deal is reportedly subject to shareholder approval and the approval of the Chilean regulator, SCJ.