September 1, 2015 / 5:16 PM / 2 years ago

S.Africa's Sun Intl seals Latam merger with Chile's Dreams

JOHANNESBURG, Sept 1 (Reuters) - Sun International, South Africa’s second-biggest hotel and gaming operator, has finalised a merger of its Latin American business with Chile’s Dreams SA to create a group valued at about $400 million, it said on Tuesday.

Sun International will own 55 percent of the merged entity, which will have more than 6,000 slot machines, 295 gaming tables and more than 530 hotel rooms in Chile, Panama, Peru and Colombia.

For Sun International the deal gives its business in the region sufficient scale to remain viable without the support of the parent company.

Sun International plans to float the new company on the Santiago Stock Exchange or another bourse within two years, to allow the sale of a 45 percent holding in Dreams held by Entretenimientos del Sur Limitada, a private equity firm controlled by Citigroup.

Chilean entrepreneurs Claudio and Humberto Fischer will remain shareholders in the merged company, Sun International said. (Reporting by Tiisetso Motsoeneng; Editing by David Holmes)

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