Tsogo Sun says it will buy a 20% stake in two Sun International subsidiaries that operate casinos in Western Cape.
Last summer, the two companies canceled the deal, which Tsogo Sun would have paid R2.1 billion for its stake in two Western Casino and Golden Valley Casino owned by rival Sun International. Following an investigation by relevant regulators, the National Competition Commission recommended that the Competition Tribunal ban trading. However, if the deal had been completed, Tsogo Sun would have exerted influence on all five casinos operating in the Western Cape.
Less than a year after the two gambling companies abandoned the deal, they are now planning to shape another less ambitious idea. Tsogo Sun has announced it will buy a 20% stake in Sun West International and Worcester Casino, a subsidiary of Sun International. The company will pay 1.3 billion R.
Sun International will therefore continue to hold a controlling stake in the two companies and allow its partner, Grand Parade Investments, to remain involved in the South African gambling industry. Those familiar with the matter have suggested that the proposed deal would be classified as a non-complementary deal, meaning it is unlikely to be investigated by competing authorities. 온라인경마
In other words, if the transaction is regarded as a simple acquisition of shares and is notified under the Competition Act, it is likely to be completed. Under the terms of the proposed deal, Tsogo Sun will acquire a 10% economic and voting stake in both Sun West International and Worcester Casino for a sum of R675 million. Through Grand Parade Investments, both companies will earn an additional 10% interest for a total of $675 million.
On the potential 20% stake acquisition by the two casino companies, Tsogo Sun said it was an attractive investment opportunity to provide interest in South Africa’s Western Cape’s superior casino assets and increase exposure in the region.