BOTSWANA – Sun International, which operates hotels, casinos, and resorts in South Africa, is returning to Botswana by purchasing Peermont Holdings, the majority owner of the Grand Palm Hotel and Convention Centre in Gaborone.
This comes seven years after it exited its investments in the country.
The South African hospitality and gaming group now has a 40% stake in Peermont Global Botswana.
The deal is subject to conditions made by the Competition and Consumer Authority (CCA).
Sun International will take over properties, including the Grand Palm and the Peermont Mondior, which are located in Gaborone.
It will also take over the Peermont Metcourt Hotel and Sedibeng Casino in Francistown.
Under the transaction, conditionally approved by the CCA, Sun International will buy a 40% stake in Peermont Global Botswana.
Botswana’s state-owned investment agency, the Botswana Development Corporation, previously owned this entity.
This takeover comes from Sun International’s acquisition of Peermont Holdings, announced in December 2023.
Peermont is the hospitality and entertainment group that owns and operates the flagship Emperors Palace Resort in Johannesburg.
According to Sun International – the brand behind the iconic Sun City resort – the acquisition represents a significant value proposition. It will give the group a chance to acquire significant gaming and hospitality assets.
The Competition and Consumer Authority has noted the risks surrounding the buyout of Botswana Development Corporation.
It is aware that Sun International will acquire a dominant position in the local casino market.
The approval of the acquisition deal comes with several conditions.
These include retaining all employees from the target enterprise and prohibiting the dismissal of any employees in Botswana.
In addition, Sun International must provide documentation on this for three years after the takeover and must give priority to locally-owned suppliers.
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