Merging Parties Make Submissions on Proposed Sun International South Africa and Peermont Group Acquisition

Representatives of merging parties and other interested third parties today (30^th June 2015) made submissions to the Competition Authority at a public hearing on the proposed intention by Sun International South Africa (Pty) Ltd to acquire 100% equity interest in Maxshell 114 Investments (Pty) Ltd (Peermont Group).

The hearing was held with the parties to the transaction and other interested third parties, pursuant to section 58(3)(a) of the Competition Act to allow them 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. 

Stakeholders who attended the hearing included hotels and lodges, travel agents, travel and tour companies, casino operators, industry associations such as the Hotel and Tourism Assosiation of Botswana (HATAB) Botswana Tourism Organisation, the Local Enterprise Authority, the Department of Trade and Consumer Affairs, Botswana Investment and Trade Centre, the media,  and law firms.

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, which is a minority shareholder with 16% in Gaborone Sun, 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 Competition Authority will continue receiving submissions before making a final determination on this proposed merger in the near future.