Merger creates large gaming group

Johannesburg - Dreams and Sun International [JSE:SUI] announced that they have entered into a memorandum of understanding to merge their Latin American operations.
 
The Latin American operations of Sun International, including Monticello in Chile, Ocean Sun Casino in Panama City and a project near completion in Colombia, will be merged into Dreams, which has a strong presence in Chile and has also expanded into Peru.

Upon completion of the merger, it is anticipated that the current shareholders of Dreams and Sun International will each own approximately 50% of the combined entity.
 
Immediately after the merger, the parties have agreed that Sun International will acquire further shares in the new merged entity to take its shareholding up to 55% through a combination of acquiring shares of the combined entity from the Dreams shareholders and subscribing for newly issued shares of the combined entity.
 
The merged entity will be managed by the existing executive team of Dreams.
 
The merger is subject to execution of definitive transaction documentation, due diligence and approvals from relevant gaming authorities. The tentative closing date is anticipated in the third quarter of the 2015 calendar year.