Sun International returns to Botswana with acquisition plans
South African hospitality giant Sun International is set to make a significant comeback to Botswana's tourism sector, seven years after its exit. The company has announced plans to acquire Peermont Holdings, which owns 60% of Peermont Global Botswana (PGB), operator of the prestigious Grand Palm Hotel and Convention Centre in Gaborone.
The deal, part of a larger ZAR 7.3 billion acquisition of Peermont Holdings in South Africa, will see Sun International also purchase the Botswana Development Corporation's 40% stake in PGB. This move will grant Sun International control over additional properties, including the Peermont Mondior in Gaborone and Peermont Metcourt Hotel & Sedibeng Casino in Francistown.
While the Competition and Consumer Authority has conditionally approved the transaction, it raised concerns about potential job losses and the exit of citizen shareholders. The authority noted that Sun International would gain a dominant position in Botswana's casino gaming market, albeit due to PGB's pre-existing market share.
This strategic acquisition marks Sun International's return to Botswana's lucrative hospitality sector, positioning the company as a major player in the country's tourism landscape.
Source: Mmegi Online