Sun International buys into Chilean casino

LUXURY hotel and leisure group Sun International has won approval from the Chilean gambling regulator, the Superintendencia de Casino de Juego, to buy a 40% stake in the holder of a 15-year Chilean casino licence.

Sun International did not place a value on the 40% in San Francisco Investment, which has a 15-year casino licence in the premier casino opportunity in Chile, but the final product is expected to cost $200m. It will be the biggest private sector investment in Chile’s leisure industry, the group said yesterday.

The casino complex site is close to Santiago, Chile’s capital city, which accounts for 45% of the country’s gross domestic product. The development will consist of a casino and family entertainment centre which will include 1500 slot machines, 80 tables and 300 bingo positions.

It will also have a 155-room hotel, spa, an 1800-seat conference centre, and other sports, business, tourist and retail and entertainment facilities.

Sun International said the casino and first project elements would open in October next year. The group’s counter rallied R2, or 1,4%, to R148 in intraday trade after news of the group winning regulatory approval to buy 40% in the project got to the market.

Sun International CE David Coutts-Trotter said yesterday the regulator’s approval enabled the project capital structure and funding to be finalised.

“The regulator has also approved a number of enhancements we proposed to the original concept, on facilities, planning and design,” he said. “The total built area at the site will thus grow by about 50%, which — together with the superior quality of finishes we are introducing, and installation of the latest systems in gaming technology — will result in an increase in the overall investment in the Mostazal region,” he said.

Sun International has a market capitalisation of $2,2bn and a total enterprise value of $2,8bn.

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