The South African gambling operators have revealed plans to sign an agreement regarding Western Cape casino.
South Africa.- Tsogo Sun and Sun International have revived plans for Western Cape casino ownership reshuffle. Tsogo Sun revealed that it would buy a 20 percent stake in two Sun International subsidiaries currently operating casinos in the Western Cape.
Last summer, both operators canceled a deal, under the terms of which Tsogo Sun would have paid R2.1 billion (US$140 million) for a stake in two Western Cape gambling venues: Sun International-owned GrandWest Casino and Golden Valley Casino. However, South Africa’s Competition Commission recommended that the Competition Tribunal prohibit the deal. If the transaction had been completed, Tsogo Sun would have had influence in all five casinos operating in the Western Cape.
Less than a year after the failed deal, the South African operators are now planning to materialise a less aggressive idea. Tsogo Sun announced that it is to purchase a 20 percent stake in Sun International’s subsidiaries SunWest International and Worcester Casino for which the company is to pay the amount of R1.3 billion (US$ 86 million.) Under this agreement, Sun International would remain in possession of a controlling stake in the two companies and would also allow for its partner Grand Parade Investments to remain involved in the South African gambling industry. In the event the deal is considered a simple acquisition of an interest and is thus, not notifiable under the Competition Act, it would likely be completed.
Tsogo Sun stated that this is an attractive investment opportunity that would provide it with an interest in excellent casino assets in South Africa’s Western Cape and therefore, increase its exposure in the region. The company already controls Mykonos Casino, The Caledon Casino and Garden Route Casino.