On December 14, 2023, Sun International, a major casino and entertainment operator, announced a deal to acquire the Peermont Group, a casino and hotel group in South Africa, for approximately R7.3 billion (US$400 million). This move is seen as a unique growth opportunity for Sun International, as it will allow the company to expand its portfolio by adding Peermont’s flagship property, the Emperors Palace Resort. Sun International already boasts an impressive portfolio that includes the iconic Sun City casino and resort in South Africa.
The acquisition of the Peermont Group will also enable Sun International to expand its presence in the regulated South African market. The deal will incorporate the integration of eleven Peermont properties located across South Africa and Botswana, dating back to the group’s establishment in 1995. Additionally, Sun International will benefit from Peermont’s online sports and entertainment wagering site, PalaceBet, which will further extend the company’s online reach.
The Emperors Palace Resort is considered the main asset in this acquisition. The resort, located in Gauteng, is a leading gaming destination with four hotels and a wide range of leisure and entertainment amenities. Its proximity to the OR Tambo International Airport makes it a convenient destination for high rollers from abroad.
CEO Anthony Leeming commented that the addition of Peermont’s land-based casinos, particularly the Emperors Palace Resort, will enhance the quality of earnings and cash flow generation for the group. This aligns with Sun International’s strategic intent to focus on large urban casinos while driving value-enhancing strategies across smaller regional assets and online growth.
Following the announcement of the acquisition deal, Sun International’s shares experienced a slight rise on December 18, 2023, contributing to an overall growth of 13% for the year. This acquisition marks a significant expansion for Sun International and positions the company for further growth and success in the South African market.