South African operator Tsogo Sun has announced its intention to buy a 20 per cent interest in Sunwest International and Worcester Casino for R1.3bn from Sun International, in the Western Cape.
The move comes a year after the competition authorities halted Tsogo Sun’s plans to takeover Sun International. It will allow Sun International to remain in place as operator alongside its black empowerment partner, Grand Parade Investments (GPI).
Tsogo Sun CEO Marcel von Aulock said Tsogo was not buying any influence in the management of the company. This means that the deal will likely be classified as ‘non-notifiable’ meaning it will avoid scrutiny from the competition authorities.
Tsogo Sun will buy a 10 per cent voting and economic interest in Sunwest and Worcester from Sun International for R675m as well as an additional 10 per cent in both from GPI, also for R675m.
The company said the deal was consistent with its growth strategy of allocating capital to attractive opportunities in the hotel and gaming sector.
SunWest’s primary assets are the GrandWest Casino and the Table Bay Hotel in Cape Town situated on the historic Victoria & Alfred Waterfront. Worcester operates the casino, hotel and ancillary leisure and entertainment business in respect of the Golden Valley Casino at Worcester in the Breede River Valley.