Sun International has raised its stake in Chilean casino group Sun Dreams as the South African casino and hotel operator zeroes in on the Latin American market.

The JSE-listed hotel and casino group announced that its subsidiary, Sun Latam, and fellow stakeholder Nueva Inversiones Pacifico Sur Limitada will buy out a 19.3 percent stake in Sun Dreams, which is held by Chile’s Entretenimientos Del Sur Limitada (EDS).

In March, EDS said it will sell its shares via an initial public offering, but instead of proceeding with the IPO, Sun International and Pacifico agreed to buy out EDS for $126 million.

The deal will see Sun International increase its stake from 55 percent to 65 percent, while Pacifico will raise its stake from 25 percent to 35 percent.