Sun International Ltd has agreed to pay Peermont Global US$ 42.8 million after an attempt to buy the company failed.
South Africa.- Sun International Ltd. will have to pay 675 million rand ($42.8 million) to fellow South African hotel and casino operator Peermont Global after an attempt to buy the company collapsed amid a failure to win antitrust approval.
Sun International had agreed to pay as much as 900 million rand (US$56.8 million) to Peermont if the deal failed and a new complex at Menlyn Maine, in Pretoria, started operations. Sun International said in a statement that a settlement was reached as the Time Square resort is at an advanced stage of construction and won’t open until April. Before any deal to merge the companies was closed, Peermont had objected to the project in the High Court.
In March 2015, Sun International agreed to buy Peermont to add resorts such as Johannesburg’s Emperor’s Place and resolve the dispute over the Menlyn Maine complex. However, the Competition Commission recommended in December that the deal be blocked due to the effect it may cause on the gambling market in the South African province of Gauteng.
According to Sun International, the Competition Tribunal was due to conduct a hearing into the takeover in June, three months after a March 31 approval deadline set by the companies.