Business

BDC retains its stake in Peermont Global Botswana

Staff Writer | Monday August 19, 2024 06:00

The Botswana Development Corporation (BDC) has stressed that it is not disposing of its 40% shareholding in Peermont Global Botswana, the group that operates several hotels and casinos in Gaborone and Francistown.
 
The Botswana Development Corporation (BDC) has stressed that it is not disposing of its 40% shareholding in Peermont Global Botswana, the group that operates several hotels and casinos in Gaborone and Francistown.

The Competition and Consumer Authority (CCA) recently granted Sun International approval to take over Peermont Holdings, which indirectly owns 60% of Peermont Global Botswana. However, the BDC, which owns the balance of the shares, will retain its 40% shareholding in the hotel and leisure resort group.

“After the transaction, BDC will continue to own 40% of Peermont Global Botswana Limited, ensuring its continued significant stake in the operations of these key properties,” BDC Head of Corporate Affairs, Boitshwarelo Lebang-Kgetse said in a statement.

BDC was responding to media reports that said the Sun International transaction would include the purchase of the BDC’s stake in Peermont Global Botswana.

Instead, in its conditional approval of the transaction, the CCA ruled that should Sun International wish to dispose of the local business operations, it should first offer these to the BDC.

Lebang-Kgetse said the impetus for BDC to pursue the transaction arises out of the Corporation’s intent to grow the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector in line with the government’s strategy for the hospitality industry.

“The transaction will also support BDC’s efforts of allowing citizens to participate in the project,” she said.

As part of the CCA’s conditional approval of the deal, Sun International is also barred from retrenching any employees in Botswana as a direct result of the acquisition. In addition, the South African giant is required to “give priority to local and/or citizen Batswana or citizen-owned companies in the supply of goods and/or services to the merged entity in Botswana in compliance with relevant Government Laws and Policies”.

Sun International has to provide details of all its local employees after the takeover every year for three years. The group also has to provide details of all services and goods suppliers after the takeover every year for three years.

Sun International, the South African giant which is one of Africa’s largest tourism and leisure operators, left Botswana in 2017 after selling its 16% stake in Gaborone Sun to Minor International, the parent group to Avani Hotels.

Sun International’s takeover of Peermont Holdings, a major South African hospitality and gaming group, has been valued at R7.3 billion before deductions for debt and other considerations.

Peermont Global Botswana owns the Peermont Mondior Hotel and Metcourt Inn in Gaborone, as well as the Metcourt Lodge and Sedibeng Casino in Francistown. Grand Palm Hotel Casino and Gaborone International Convention Centre (GICC) is 100% owned by Botswana Hotel Development Company, a wholly owned BDC subsidiary.