Sun and Dreams plan on investing US300m in Latin America the lion’s share of which could be invested in Peru according to corporate finance manager of Dreams Claudio Tessada. Speaking to local newspaper Diario Financiero he said that the three primary markets for the company will be Brazil, Peru and Chile but the main focus in the near future will be in Peru due to uncertainties in the other two markets.
“Brazil is in the process of legalizing gambling, and in Chile there is still a lot of ambiguity amongst the authorities, so for now we will focus on Peru . . .Brazil is the biggest sleeping market in the world because it is one of the few places where gaming is not permitted,” Tessada said. Tessada explained that the company was watching developments very closely in Brazil and the amount it invested in Peru would depend on the opportunities that presented themselves. However he went on to say that the company was “not at all convinced” by the new licensing process In Chile as it left room for too much ambiguity and could lead to future conflicts over licences as is now being experienced in Chillán.
The company has already seen good results from its operations in Peru. In March the company reported that it had recorded a net profit of $10.4bn (Chilean pesos) an increase of 15 per cent compared to the previous year. The good results were attributed in part to a strong performance in Peru where it reported a 31 per cent increase in revenues in the last quarter of 2014.
Dreams and Sun International finalised the merger between both companies creating Latin America’s largest gaming operator in September 2015. The merger will create a group valued at around US$400m. In order to prepare for the investment the company expects to complete the merger in the coming weeks in Chile after Chile’s Gaming Board approved the merger last week. The company will then define the company’s new name and at the same time begin to refinance US183m of the US$213m which the companies will share in combined debt.