According to eTNW, Sun International will merge with Latin American gaming company Dreams S.A. (not to be confused with the South African tour operator Dreams) to create the largest gaming company in Latin America.
The Latin American operations of Sun International, including Monticello in Chile, Ocean Sun Casino in Panama City, and a project near completion in Colombia, will be merged into Dreams S.A., which has a strong presence in Chile and has also expanded into Peru.
On completion of the merger, it is anticipated that the current shareholders of Dreams S.A. and Sun International will each own approximately 50% of the combined entity. Sun International plans to consolidate the merged unit on its books by paying $65 million to raise its stake in the business from 50% to 55%.
The combined entity will be the sole vehicle through which Dreams S.A. and Sun International will develop their hotel and casino business in Latin America.
The merger is subject to approvals from the relevant gaming authorities.