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Chile – Pacifico agrees to buy Sun International’s entire stake in Sun Dreams

By - 24 August 2020

Chile’s Nueva Inversiones Pacifico Sur Limitada has reached a settlement with Latin American casino operator Sun Dreams and will now buy the entire stake held by Sun International’s subsidiary, Sun Latam.

Pacifico has agreed to buy a 64.94 per cent stake in casino operator Sun Dreams for $160m from South African partner Sun International to take full ownership of the business and settle a dispute. It had previously agreed to stump up cash for a 14.94 per cent stake in Sun Dreams but didn’t finalise the deal leading to a dispute

Sun International said the price was equivalent to 5.5 times 2019 earnings before interest, taxes, depreciation, amortization, and restructuring or rent costs, which could rise to 6.5 times if Sun Dreams meets certain milestones, such as licence renewals.

Pacífico Sur President Claudio Fischer, said: “Fortunately, we are currently facing the challenging circumstances the industry is undergoing with a solid financial position, which enables us to take advantage of growth opportunities in a business we already know and where we stand out as a serious and responsible firm.”

Pursuant to the relevant documents filed with Chile’s Securities Market Commission (CMF), “the closing of the transaction is subject to customary terms and conditions, including the approval by gambling authority Superintendencia de Casinos de Juego, and other relevant business permits for both shareholders.”

Sun Dreams is currently the largest casino operator in Latin America, with casinos in Chile, Peru, Panama, Argentina, and Colombia.

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