Sun International to buy Peermont for R9.5bn

Johannesburg - Hotel chain Sun International [JSE:SUI] on Friday announced plans to take over casino resort group Peermont for nearly R9.5bn ($775m).

To fund the acquisition, Sun International intends to roll over nearly R3.9bn of Peermont's senior debt while taking on a fresh facility of about R575m, it said in a filing to regulators.

In addition, it plans to issue 10.5 million shares of R120 each of Sun International stock to Peermont shareholders and a rights offer for a further R3.75bn.

Sun International said it would explore disposal of some small Peermont assets after closing the transaction. Should a deal to sell any before to the transaction's close be reached, then Sun International's funding requirement will be reduced, it said.

Peermont  has 13 properties in Botswana and South Africa, including Johannesburg’s Emperors Palace.

Sun International's medium-term objective is to create a group with fewer, larger, quality assets, it said.