Sun International eyes Asia, Latam casino opportunities

    Sun International has sold a significant portion of its African hotels to Bangkok-based hotel company Minor International raising cash to allow it to pursue casino opportunities in Asia and Latin America.
    Sun is selling eight properties in Botswana, Lesotho, Namibia, Swaziland and Zambia for R679.5 million ($63.9 million). The two companies have entered a strategic accord to operate the assets going forward, with Sun managing the casino operations and Minor International taking control of the hotel management and marketing.
    Sun International will dispose of 50 percent of its interest in Zambia, and 80 percent of its interests in Botswana, Namibia, Lesotho, and Swaziland.
    “Going forward Sun International will be able to give greater focus to opportunities identified in Latin America and Asia (where Minor International has a strong presence) as further key growth markets for its core casino business,” the company said in a press release Friday.
     In addition, Minor International will commit its pro rata share of new capital expenditure to realize the revenue potential of the African Assets, giving Sun International more room to consider capital investment opportunities elsewhere.
    Sun International will use proceeds from the disposal to reduce its debt and provide capacity for its strategic expansion initiatives.
    The Thai company currently owns eight luxury game lodges and resorts in Kenya and Tanzania under the Elewana Collection, and five hotel projects in Mozambique under the Anantara and Avani brands.