Sun International drops Peermont deal
Pauline Dikuelo | Wednesday July 16, 2025 06:55
The South African hospitality giant had planned to acquire Peermont Holdings, the majority owner of Grand Palm Hotel and Gaborone International Convention Centre (GICC), in a deal initially valued at R7.3 billion before deductions.
Peermont Holdings also indirectly owns 60% of Peermont Global Botswana, which operates the Peermont Mondior Hotel and Metcourt Inn in Gaborone, as well as the Metcourt Lodge and Sedibeng Casino in Francistown. The remainder is owned by the Botswana Development Corporation (BDC).
The Competition and Consumer Authority (CCA) had conditionally approved the transaction, imposing several requirements on the proposed merger. Amongst the key conditions was a clause requiring Sun International to offer any local assets it wished to dispose of to the BDC first. Additionally, Sun International was prohibited from retrenching any staff in Botswana as a direct result of the acquisition.
The CCA also stipulated that the company must prioritise citizen-owned businesses in the procurement of goods and services, in accordance with relevant government laws and policies. Furthermore, Sun International would have been obligated to submit annual reports for three years detailing its employee structure and supply chain in Botswana post-acquisition.
‘The authority is alive to the potential public interest concerns that may arise from the merger regarding the risk merger specific retrenchment and the citizen shareholder exiting the shareholding structure of Peermont Global Botswana resulting in citizen disempowerment,” read a statement from CCA .
This latest development marks the latest major shift in Sun International’s relationship with the Botswana market. The group exited the country in 2017 when it sold its 16% stake in Gaborone Sun, now Avani Gaborone Resort & Casino to Thailand-based Minor International.
The Johannesburg Stock Exchange listed Sun International, is already a major player in the industry with crown jewels like Sun City wild Coast Sun, Table Bay Hotel and the Maslow as well as its digital platform SunBet, which aims to consolidate its dominance in both physical and online gaming.