| Mon 10 Dec 2007, 8:00 | | SUI - Sun International - Chilean regulator approves Sun International`s |
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SUI
SUI
SUI - Sun International - Chilean regulator approves Sun International`s
participation in new casino project
Sun International Limited
(Incorporated in South Africa)
(Registration number: 1967/007528/06)
Share code: SUI
ISIN: ZAE000097580
("Sun International")
CHILEAN REGULATOR APPROVES SUN INTERNATIONAL`S PARTICIPATION IN NEW CASINO
PROJECT
(Santiago, 10 December 2007) The Chilean gambling regulator, the
Superintendencia de Casinos de Juego (SCJ), has formally approved the
participation of Sun International Ltd in Chile`s most significant new casino
project.
Sun International will now acquire a 40% equity interest in local entity San
Francisco Investment SA, which holds a 15-year casino license in Region Six,
the premier casino opportunity in Chile. Sun International will also be
responsible for the development of the complex, and will benefit from a long-
term management consultancy agreement.
This follows a standard process of probity investigations, and the approval by
the SCJ in October of enhancements to the project.
The new property will be a family entertainment complex which will include
1500 slot machines, 80 tables and 300 bingo positions. It will also have a
top quality 155 room hotel and luxury spa, an 1800 seat conference centre,
sports facilities, as well as an amphitheatre, business centre, artisan mall,
retail, tourist information centre, entertainment amenities for families and a
wide variety of vibrant bar and restaurant outlets.
Sun International`s chief executive, David Coutts-Trotter, said today that the
SCJ approval fulfilled the last of Sun International`s conditions for this
investment and enabled the capital structure and funding of the project to be
finalised.
"The SCJ has also recently approved a number of enhancements we proposed to
the original design with regard to facilities, planning and design. The
effect of these changes will be to improve capacity, service levels and
quality in respect of the ultimate product. This will add to the appeal of
the complex as a destination for local and international visitors.
"In the ongoing planning process we identified areas where, through design, we
could improve upon the guest experience and the tourism offering. These
included increasing the size of the hotel from 70 to 155 keys, providing
additional open and undercover parking, additional entertainment amenities,
dedicated non-smoking and smoking gaming areas, and the introduction of a
top-class Salon Prive".
The retail and entertainment precinct would move, he said, to a site adjacent
to the casino in a climate controlled mall for the convenience of visitors,
and the hotel had been relocated up the hill to afford guests a better vista
of the total site and the valley. Gaming would now take place on one floor
only, and mindful of the importance of the convention centre, this key
component would now move to the first floor of the main building, with
additional break-away rooms.
"The total built area at the site will consequently grow by some 50%, which,
together with the superior quality of finishes we are introducing, and the
installation of the latest systems in gaming technology, will result in an
increase in the overall investment at Mostazal", he said.
Mr Coutts-Trotter said planning and development refinements such as these
would promote the better integration of various project components and
operating efficiencies.
"We are pleased with the progress we have achieved to date. We are on track
in terms of the planning cycle and construction, and are thankful to the SCJ
for their constructive assistance and contribution", he said.
While the SCJ has approved expenditure of $155-million, the final product is
expected to ultimately cost $200-million, and will be the largest private
sector investment ever in Region Six`s leisure industry. The casino complex
is very well located on a site on the Panamericana Sur highway 57 kms south of
Santiago, Chile`s capital city, which accounts for 45% of the country`s GDP.
The first components of the project, including the casino, will open in
October 2008.
ENDS
For further information, please contact Kerry Capstick-Dale on 021 426 1233.
NOTE TO EDITORS
Sun International was established in 1983 and listed on the Johannesburg Stock
Exchange in 1985. The group`s operations include resorts, luxury hotel
products, and integrated urban entertainment centres with casinos in 14
jurisdictions in South Africa, Zambia, Botswana, Namibia, Lesotho and
Swaziland.
More than half of this portfolio has been developed in the last ten years,
with new projects in the Middle East, Africa, and South America.
Every day, over 50 000 customers from over 50 countries visit a Sun
International property.
Over a period of three decades, the group has invested more than US$2 billion
in new tourism infrastructure. It employs some 8 300 people, has indirectly
created 50 000 new employment opportunities in the broader tourism industry,
and it has been estimated that its business has a direct impact on the
livelihood of more than 500 000 people in southern Africa.
Sun International has casino licenses in eight of South Africa`s nine
provinces. The group operates 20 casinos in southern Africa, including 13 of
the 34 casinos currently operating in South Africa. The group is the leading
casino operator in the southern hemisphere and enjoys a 43% share of the South
African casino market. Its newest property is the Golden Valley Casino in
Worcester, which opened in November 2006.
The group has a market capitalisation of $2.2-billion, and a total enterprise
value of $2.8-billion.
The group reported an excellent performance for the financial year ended 30
June 2007. Group revenue of $1-billion was 17% up on the previous year,
contributing to a 3 percentage point improvement in the EBITDA margin of 37%.
EBITDA at $388-million was 27% up on the previous year. Adjusted headline
earnings of $121-million were 35% up and diluted adjusted headline earnings
per share were 33% ahead of last year. Gaming revenue grew by 18%, and rooms
revenue was 14% up on the previous year. Occupancies improved by 2 percentage
points to 74%.
In 2007 the group was ranked fifth, among South Africa`s leading companies, in
the authoritative Financial Mail`s "Top Companies" Report.
Various properties in the group have won major international and domestic
awards. The Table Bay Hotel in Cape Town has twice been named by Conde Nast
as the best hotel in Africa and the Middle East, and this year was chosen as
the eighth best hotel in the world by readers of that prestigious travel
publication. Also in 2007, Sun City was selected as overall winner in the
acclaimed Imvelo Responsible Tourism Awards, among many other industry awards
received by the resort in recent years.
Date: 10/12/2007 08:00:03 Produced by the JSE SENS Department.
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