GAMING FOR AFRICA
Sun International Targets Growth With Peermont Acquisition
Sun International has today announced that it has entered into an agreement with the shareholders of Peermont Holdings Proprietary Limited, a leading hospitality and entertainment group which includes the flagship Emperors Palace Resort, to acquire all of the issued ordinary shares and any claims on loan account against Peermont Group. The acquisition represents a unique opportunity
for Sun International to acquire a group of gaming and hospitality assets of significant scale and quality, together with operating 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. 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. In alignment with Sun International’s strategy,
the proposed acquisition will further 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. 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 CE Anthony Leeming said:
“Sun International has, over the last six years, repositioned itself from a highly geared hospitality and gaming group operating across several regions in Africa and Latin America, to a simplified and locally empowered South African-focused, cash generative business with disciplined capital allocation principles. The Group’s strong performance over the past two years has increased available capital for the Group and put us in the enviable position of being able to consider value accretive acquisitions at an attractive point in the cycle. “The addition of Peermont’s land-based casinos
to our portfolio, underpinned by the flagship Emperors Palace Resort, will enhance the quality of earnings and cash flow generation of the Group. This is consistent with the Group’s strategic intent to focus its portfolio on large urban casinos with the ability to drive value- enhancing strategies across smaller regional assets and online growth. “The Peermont Group’s entrepreneurial
management team has been a significant factor in its success and the shared expertise of the staff and management of the combined group will result in mutual benefits and efficiencies. Further, we are encouraged that the proposed transaction creates more opportunities for our staff to develop and grow within the combined group.
Sis Signs Agreement To Provide Extensive Esports Offering Through Playtech Platforms
SIS (Sports Information Services), the leading multi-content supplier of 24/7 live betting services, has agreed a deal to supply its end-to-end esports betting product, Competitive Gaming, through Playtech’s online and retail sports betting platforms. The entire library of SIS’ Competitive Gaming
content, with over 150,000 annual events provided across ebasketball and esoccer contests between skilled gamers, will be accessible to Playtech’s extensive global network. The agreement, which extends an existing
partnership whereby SIS supplies its racing and numbers products via Playtech, is the latest important step within the stated ambition of the supplier to further develop relationships with leading platforms. The full end-to-end Competitive Gaming
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solution produced entirely in-house and with integrity at its core, has been proven to deliver superior margins around the clock and will significantly boost Playtech’s content portfolio. Playtech is the world’s largest online gaming software supplier, offering cutting-edge content and solutions to the industry’s leading operators. This latest agreement also enhances SIS’
reputation as a leading supplier in the event- based esports betting space, following successful recent integrations with bet365 and Betsson. SIS Competitive Gaming is the only esports
product available on the market to have been awarded the Esports Integrity Commission’s (ESIC) Gold Standards, the highest possible accreditation created to set unmatched levels of integrity and safety in the esports betting industry. Every contest also features live commentary and on-screen graphics, including
unique betting prompts to provide a comprehensive experience. Andy Kelly, Head of Commercial Partnerships
at SIS, said: “SIS and Playtech have a longstanding and successful relationship through our racing and numbers products. We are pleased to strengthen this relationship further with the inclusion of SIS Competitive Gaming. “Playtech customers will now have access to
our market-leading offering of highly competitive esoccer and ebasketball contests offering high margins and unbeatable integrity. The product will be launched both online and via Playtech SSBTs to include full data and streaming.”
“We will leverage off combined synergies to
drive margin enhancement and capital efficiency. Importantly, we are in a position to conclude a transaction of scale, rapidly de-gear and maintain a dividend pay-out as a result of the Group’s excellent recent performance and strong financial position thereby benefiting our locally empowered South African shareholder base,“ said Leeming. The exact purchase consideration payable in
cash to the sellers will be determined with reference to an enterprise value of the Peermont Group of R7 300 million, less net debt and certain sellers’ transaction costs and subject to capital expenditure and working capital adjustments, if applicable, calculated at the closing date of the proposed transaction, estimated to amount to approximately R3 236 million as at 30 September 2023. Implementation of the agreement is subject to
the fulfilment of conditions precedent standard for a transaction of this nature, including approval by the relevant Competition Authorities, the Gauteng Gambling Board and Sun International shareholders.
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