- July 8, 2014
- Posted by: admin
- Category: Tsogo Sun Holdings
SABMiller plc is to offload its 39.6% stake in South African hotel group Tsogo Sun, currently valued at just over US $1 billion.
The beverages company is Tsogo Sun’s second largest shareholder and will dispose of the shares through two transactions: Tsogo Sun itself will buy back approximately 130 million ordinary shares for around US$260 million, while there will be a fully marketed secondary placing of up to approximately 305 million ordinary shares to selected South African and international institutional investors.
SABMiller chief executive Alan Clark said: “SABMiller has been a supportive shareholder of Tsogo Sun since 2002, when we transferred our existing gaming and hotel assets into Tsogo Sun as part of a landmark Black Economic Empowerment transaction.
“The business has performed well over the years. The merger with Gold Reef Resorts in 2011, and the resultant listing on the JSE, has transformed Tsogo Sun.
“However, gaming and hotels are not core to our operations and we have concluded that the time is right for us to exit our investment through a transaction which is beneficial to shareholders of both SABMiller and Tsogo Sun and to reinvest the proceeds in our core growth businesses, including our African operations.”
Source: Hotelier – Middle East