British brewer SABMiller Plc (SAB.L,SBMRY.PK) said Friday that it has sold 293.89 million shares in South Africa-based gaming and hotel group Tsogo Sun Holdings Ltd. and raised ZAR7.6 billion, or $707 million. The company will invest the net proceeds from the sale in its core growth beverage businesses, including its African operations.

SABMiller said in early July that it has decided to sell its entire 39.6 percent stake in Tsogo Sun, a Johannesburg-listed gaming, hotel and entertainment business. The company’s stake in Tsogo Sun is valued at nearly ZAR11.7 billion or $1.09 billion.

SABMiller said Friday that through its wholly owned subsidiary SABSA Holdings, it has sold 293.90 million ordinary shares of Tsogo Sun to selected South African and international institutional investors at ZAR25.75 per share for gross consideration of ZAR7.6 billion, or about $707 million. The placing shares will settle on July 28, 2014.

Subject to approval by Tsogo Sun shareholders of a loan facility to the company’s executive management team, members of Tsogo Sun’s executive management team have committed to buy 7.77 million ordinary shares in Tsogo Sun from SABMiller at the placing price of ZAR25.75 per share.

Tsogo Sun will buy back the balance of SABMiller’s stake in the company of 133.58 million ordinary shares for an aggregate consideration of ZAR2.8 billion, or about $261 million. This is also subject to approval by Tsogo Sun shareholders.

Following the purchase of shares by Tsogo Sun’s executive management team and the repurchase by the company, SABMiller will no longer hold any ordinary shares in Tsogo Sun.

Source: RTT News