According to Fin24.com, Sun International has entered into agreements with Minor International Public Company (MINT), whereby Sun International will dispose of a significant portion of its interests in its African assets to a foreign subsidiary of MINT.
The investment by MINT will be a combination of an acquisition of existing shares from the relevant Sun International subsidiaries and the acquisition of an interest in the operating management agreements, whereby Sun International management provides management and related services in respect of each of the African assets.
MINT will also commit to invest in those operations that require refurbishment in the short to medium-term.
The assets involved include the Gaborone Sun in Botswana, the Kalahari Sands in Namibia, the Lesotho Sun and Maseru Sun in Lesotho, the Royal Swazi and Ezulwini Sun in Swaziland, and the Royal Livingstone and Zambezi Sun in Zambia.
Sun International will continue to manage the casino operations situated at each of the African assets, and MINT will assume day-to-day management responsibility for the hotel operations other than Zambia, which will be jointly-managed under a joint venture arrangement.
The collective net purchase amounts to R664m plus the face value of any shareholder loans on the closing date.