CMS Carey & Allende has helped Chilean investment group Nueva Inversiones Pacífico Sur (IPS) buy the remaining shares in Chile’s largest casino operator, giving it full ownership of the company.
IPS, which already owned a 35% stake in local casino group Sun Dreams, bought the remaining 65% in the entertainment company.
The purchase puts an end to a dispute between the two parties, in which the South African hospitality group had filed an arbitration claim against IPS in January, arguing that the Chilean company had failed to make a USD85 million payment for its previously announced acquisition of a 15% share in casino business Sun Dreams. After that, IPS stated it had approached Sun International with an offer to purchase a 50% stake in the casino, but Sun International denied those claims. The case was expected to be handled in an arbitration court in 2021, but the latest development has settled the dispute.
Sun International’s sale follows on from a string of recent challenges for the casino business. Sun Dreams faced financial uncertainty after social unrest erupted in Chile at the end of last year, while the recent covid-19 crisis further exacerbated concerns over business expenses.
Sun International will use the proceeds of the sale to pay existing debt obligations relating to its other businesses in Latin America, as well as to fund its operations in South Africa.
Sun Dreams was created in 2016 when Sun International entered a joint venture with Chilean casino operator Dreams, and is one of the largest hotel and casino licensor with an approximate enterprise value of USD 1.5bn and 19 operation across Latin America. IPS is a family-owned investment company.
Date of announcement: 20 August 2020
Counsel to IPS
CMS Carey & Allende
Jorge Allende Destuet (partner), Sebastián Barros, Ignacio Errazquin (senior associates ), Adolfo Romero and Andrea González (associates)
Source: Latin Lawyer News