CA to Hold Public Hearing on Proposed Sun International South Africa and Peermont Group Acquisition

The Competition Authority will hold a hearing on Tuesday 30^th June, 2015, in relation to the proposed intention by Sun International South Africa (Pty) Ltd to acquire 100% equity interest in Maxshell 114 Investments (Pty) Ltd (Peermont Group).

Sun International South Africa (Pty) Ltd, the acquiring enterprise, is incorporated according to the laws of the Republic of South Africa. The enterprise has an interest in Sun International Botswana, which owns Gaborone Sun Hotel and Casino in Gaborone, Marang Casino in Francistown, Menateng Casino in Selebi-Phikwe and Letsatsi Casino in Palapye. Sun International South Africa (Pty) Ltd is listed in the Johannesburg Stock Exchange. The enterprise’s top five beneficial shareholders are Allan Gray International (Pty) Ltd, Sanlam Life Insurance Ltd, Dinokana Investments (Pty) Ltd, MMI Holdings Ltd and Old Mutual Life Assurance Company Ltd.

On the other hand, Maxshell 114 Investments (Pty) Ltd (the target enterprise), is a controlling shareholder in Peermont Global (Pty) Ltd, a firm incorporated in South Africa. In Botswana, the enterprise conducts business through Peermont Botswana, with a 60% shareholding, whilst Botswana Development Corporation Ltd holds the remaining 40%. Peermont Botswana owns the Grand Palm Hotel, Casino Convention Resort (Peermont Walmont, Peermont Metcourt Inn and the Casino) and the Peermont Mondior in Gaborone, as well as the Peermont Metcourt Inn and Sedibeng Casino, both in Francistown.

Post implementation of the proposed transaction, Sun International South Africa will own and control Maxshell 114 and the Peermont Group. As a consequence of the proposed transaction, Sun International South Africa will acquire ownership and control over The Grand Palm Hotel Casino Convention Resort Gaborone (Peermont Walmont, Peermont Metcourt Inn and the Casino), The Peermont Mondior Hotel Gaborone, Peermont Metcourt Inn Francistown and Sedibeng Casino Francistown.

The hearing will be held with the parties to the transaction and other interested third parties, pursuant to section 58(3)(a) of the Competition Act. The issues to be deliberated on include the potential effects of the proposed transaction on the market structure as well as on consumer welfare. The hearing is intended to allow the parties to the transaction to make verbal representations to the Authority with respect to the transaction as well as allow their competitors to express their views on the acquisition. 

Furthermore, other interested parties not party to the proposed transaction will be given an opportunity to voluntarily submit to the Authority any document, affidavit, statement or other relevant information in respect of the proposed acquisition. Though not mandatory, it would be preferable for those attending to submit copies of what they intend to present to the Authority not later than 24^th June, 2015. Interested members of the public are invited to this hearing which will be held on Tuesday 30^th June, 2015 at the Competition Authority - Plot 28, Matsitama Road, Gaborone at 14:30 hours.