Casino giant backs out of R7 billion deal to buy Emperors Palace-owner

Sun International has agreed to terminate a proposed transaction that would have seen the hospitality giant buy Emperors Palace-owner Peermont Holdings for an estimated R7.3 billion.

This comes after the Competition Commission recommended that the Competition Tribunal reject the proposed transaction in October 2024.

While the Competition Tribunal could still have approved the transaction despite this recommendation, the hearing dates for its decision would have occurred after the transaction’s longstop date of 15 September 2025.

Therefore, Sun International and Peermont mutually agreed to immediately terminate the proposed transaction.

This deal was first announced to shareholders on 18 December 2023, when Sun International said it had entered into an agreement with Peermont’s shareholders.

Peermont is a leading hospitality and entertainment group in South Africa that owns the flagship Emperors Palace Resort.

The deal would have seen Sun International acquire all the issued ordinary shares and any claims on loan accounts against Peermont for R7.3 billion.

This deal would have significantly expanded Sun International’s already extensive portfolio.

Sun International owns several hotels and resorts across South Africa, including Sun City, the Wild Coast Sun, the Table Bay Hotel and the Maslow in Sandton. It also owns the wildly popular online betting platform, SunBet.

The Peermont Group’s properties house an impressive number of gaming machines and hotel rooms, encompassing 3,349 slot machines, 152 gaming tables, and 1,636 rooms. 

Had this deal gone through, Sun International would have acquired Peermont’s portfolio of 11 properties, including the iconic Emperors Palace resort and online betting platform PalaceBet.

At the time this deal was announced, Sun International explained that the acquisition represents a unique opportunity for the company to acquire a group of gaming and hospitality assets of significant scale and quality.

It would also have acquired one of the largest, most cash-generative, high-quality casinos situated in a major metropolitan area.

“With its unique proximity to the OR Tambo International Airport, Emperors Palace offers a gateway to high net-worth customers from the rest of Africa and abroad,” Sun International said at the time.

“This customer base will drive opportunities for synergies with the rest of the group’s operations, including hotels and resorts, as well as the online sports and gaming business, creating large-scale benefits for Sun International.”