Sun International has said it will sell its interests in Botswana, Zambia, Lesotho, Namibia and Swaziland to the biggest leisure and hospitality firm in Asia Pacific, Minor International Public Company for R664m (US$62.7m).
“The investment by Minor will be a combination of an acquisition of existing shares from Sun International and the acquisition of an interest in the operating management agreements whereby Sun International provides management and related services in respect of each of the African assets,” Sun International said in a recent announcement.
“Minor will also commit to invest into those operations that require refurbishment in the short to medium term,” it continued. However, Sun International will continue to manage the casino operations in these countries with Minor taking over day-to-day management for the hotel operations.
This will exclude Zambia, which will be jointly managed under a joint venture arrangement between Sun International and Minor. Sun said the sale of these interests is in keeping with its strategy of enhancing its capital allocation and resources. The deal allows Sun to remain invested in its African assets with the responsibility only in the casino component of this business.
