Sun International of South Africa expands into Botswana
The South African hotel group Sun International has acquired a significant stake in Botswana’s Peermont Global, a company that operates hotels in Botswana.
Sun International, which operates hotels, casinos and resorts in South Africa, will again operate properties in Botswana.
This comes seven years after it exited its investments in the country.
SUN INTERNATIONAL IN BOTSWANA
The South African hospitality and gaming group now has a 40% stake in Peermont Global Botswana.
Travel News reports that the deal is subject to conditions made by the Competition and Consumer Authority (CCA).
OPERATING PEERMONT PROPERTIES IN BOTSWANA
Sun International will take over properties including the Grand Palm and the Peermont Mondior located in Gaborone.
It will also take over the Peermont Metcourt Hotel and Sedibeng Casino in Francistown.
Under the transaction, conditionally approved by the CCA, Sun International will buy a 40% stake in Peermont Global Botswana.
This entity was previously owned by Botswana’s state-owned investment agency, the Botswana Development Corporation.
PEERMONT HOTEL PROPERTIES
This takeover comes as a result of Sun International’s acquisition of Peermont Holdings, announced in December 2023.
Peermont is the hospitality and entertainment group that owns and operates the flagship Emperors Palace Resort in Johannesburg.
According to Sun International – the brand behind the iconic Sun City resort – the acquisition represents a significant value proposition and will give the group a chance to acquire significant gaming and hospitality assets
SUN INTERNATIONAL DOMINANCE
The Competition and Consumer Authority has noted the risks surrounding the buyout of Botswana Development Corporation.
It is aware that Sun International will acquire a dominant position in the local casino market.
CONDITIONS OF ACQUISITION
The approval of the acquisition deal comes with several conditions.
These include the retention of all employees from the target enterprise and a prohibition on the dismissal of any employees in Botswana.
In addition, Sun International must provide documentation on this for three years after the takeover.
It is also required to give priority to locally owned suppliers.
RAMPING UP AIR SERVICES
Meanwhile, Air Botswana will ramp up its flight schedule and expand its route network. This is made possible by the airline acquiring three more aircraft.
The Gaborone-based airline has introduced several new services and will connect key tourist destinations in Southern Africa.
Airline Geeks reports that new routes and services will be added progressively, starting on the first of next month.
GROWING BOTSWANA’S TOURISM SECTOR
The airline’s latest route expansion will help to connect Botswana’s tourist destinations with those in surrounding countries.
Ultimately, the improved connectivity will facilitate improved tourist flows in the region, reports Sustainability in the Sky.
“These new additions are popular destinations for business and tourism, and we are excited to offer convenient air travel between the cities for the advancement of economic activities in all the countries, particularly Botswana,” Air Botswana’s CEO Lulu Rasebotsa said.