Tsogo Sun and Sun International Consider Brand New Western Cape Casino Deal

Tsogo Sun and Sun International Consider Brand New Western Cape Casino Deal

South African gambling operators Tsogo Sun and Sun Overseas have revived plans for Western Cape casino ownership reshuffle. Tsogo Sun has revealed it would buy a 20% stake in two Sun Global subsidiaries that operate gambling enterprises in the Western Cape.

Last summer time, the two organizations canceled a deal, under the regards to which Tsogo Sun would have compensated R2.1 billion for a stake in two Western Cape gambling venues GrandWest Casino and Golden Valley Casino, owned by its rival Sun International. After an investigation by the relevant regulators, the country’s Competition Commission recommended that your competition Tribunal prohibit the offer. If, however, the transaction had been completed, Tsogo Sun would have had influence in every five casinos operating into the Western Cape.

Significantly less than an after the two gambling companies abandoned the deal, they are now planning to materialize another, less ambitious, idea year. Tsogo Sun has established that it is to acquire a 20% stake in Sun Global’s subsidiaries SunWest International and Worcester Casino. The business is always to pay the total amount of R1.3 billion.

Hence, Sun International would stay static in possession of a controlling stake into the two companies and would additionally allow for its partner Grand Parade Investments to remain involved in the South African gambling industry. Individuals with familiarity with the problem recommended that the proposed deal would be classified being a non-notifiable, which means that it’s not apt to be examined by competition authorities.Continue reading

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