Sun set to take 40% stake in Chilean operator

Posted On Tuesday, 20 March 2007 02:00 Published by Commercial Property News
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SA’s biggest hotel and gaming group, Sun International, is set to buy a 40% stake in Chilean entity San Francisco Investment, which holds a 15-year casino license in Chile, for an undisclosed sum

The acquisition is part of an agreement with International Group of Gaming & Resorts and the Novomatic group of companies, the Austrian-based gaming manufacturer and operator.

In terms of the deal, Sun International will also benefit from long-term management and consultancy agreements.

Sun International said on Monday that it considered the deal to be “the premier casino opportunity in Chile”.

Construction is due to start shortly and the casino component of the complex is scheduled to open in mid-2008.

Sun International said : “Chile is considered by the group as a country with a stable and progressive government, strong economic prospects and good tourism and investment potential.

Chile has recently introduced a new gambling dispensation and is considered internationally to be a well regulated jurisdiction with a highly regarded legislative framework, the group said.

Releasing its interim results last month, Sun International was clear on its international expansion ambitions.

CE David Coutts-Trotter said at the time the group was interested in offshore opportunities, including those in Moscow which were put on ice recently after a law restricting casino development there. The group was likely to bid for a casino in Manchester, UK, while a decision on an opportunity in Lagos, Nigeria, was likely this year.

In terms of the licence in Chile, the casino has a 70km exclusivity zone. Its customers will be largely from Rancagua and Santiago, the industrial and financial centre of Chile, and accounts for 45% of gross domestic product.

Sun International’s involvement is subject to Chile’s regulator approving an application, to be made shortly. The application will be subject to standard probity investigations, expected to be completed within the next few months.

The property is expected to have about 1500 slot machines, 80 tables and 300 bingo positions as well as hotel, conference and sports facilities, an amphitheatre, retail, tourist information centre, entertainment amenities for families and a range of bar and restaurant outlets.

Last modified on Wednesday, 05 June 2013 02:12

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