SABMiller to Dispose of Stake in South African Hotels Group
SABMiller, the world’ second largest brewer, is selling its 39.6% stake in gaming, hotel and entertainment group Tsogo Sun Holdings. The shareholding is valued at approximately ZAR11.7 billion (approximately US$1.09 billion) based on the closing share price of ZAR26.90 on 4 July 2014.
Alan Clark, chief executive of SABMiller, comments: “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.”
