Sun Dreams to become major player in largest South American casino merger
With the Clairnvest Group combined annual revenues topped US$500M in 2018
Dated May 24th, Sun International has published its Proposed merger and withdrawal of cautionary that would merge its South American casinos into a larger entity under the umbrella of Sun Dreams, partnering with the Clairvest Group of Canada, which has signed an MoU, to become one of the largest casino companies in Latin America, with combined annual revenues of about US$500 million.
The new entity would own and operate 11 casinos in Chile, 8 casinos in Peru, and one each in Argentina and Colombia, with Sun International’s Sun Dreams controlling a total 64% of the new group and Clairvest and local partners owners of Marina del Sol casino Hotel the remaining 34%. Clairvest will become a minority shareholder in this arrangement, but the merged company will become the largest casino company in Chile.
Sun International’s Rationale for proposed merger added that, “Over the past years, Sun Dreams has assembled an attractive portfolio of assets, which forms the basis to leverage its growth strategy in the region. Sun Dreams believes that in order to achieve further critical mass in Latam, the company needs to make acquisitions or merge its assets with another meaningful player in the region. In addition to expediting its growth strategy, a merger also mitigates risks to the business by diversifying its asset base.
“The Proposed Merger strengthens Sun Dreams´ position in Latam and affords Sun Dreams the opportunity to partner with Clairvest, which are experienced investors in casino assets. In addition, Clairvest will bring a wealth of experience and add value to the Merged Entity by growing the business.
“Additionally, the Proposed Merger results in the creation of one of Latam´s largest gaming groups, which will have the profile, critical mass and balance sheet to expand throughout the rest of the continent, make meaningful acquisitions and take on larger projects. The Merged Entity will be structured with a relatively low level of gearing which will ensure that it is self-sustaining.”
