SABMiller had completed the disposal of its entire shareholding in gaming and hotel group, Tsogo Sun, the world’s second biggest brewer said on Friday.
SABMiller said it had placed 293.8 million ordinary shares at a price of R25.75 and sold 7.7 million ordinary shares also at a price of R25.75 to members of Tsogo Sun’s executive management team.
Tsogo Sun also repurchased SABMiller’s remaining 133.5 million ordinary shares at R20.96 after the satisfaction of all conditions precedent, including the approval of Tsogo Sun’s shareholders.
The total gross proceeds received from the above transactions were R10.6 billion ($ 1 billion).
SABMiller no longer holds any ordinary shares in Tsogo Sun. Tsogo Sun board has been restructured with SABMiller’s representatives on the board, Malcolm Wyman, Jamie Wilson and John Davidson and Tsogo Sun’s deputy chairman, Jabu Mabuza all having stepped down from the Tsogo Sun board.
The brewer had decided to exit Tsogo Sun because Tsogo Sun is non-core to SABMiller’s business strategy.
SABMiller had sustained Tsogo Sun as a shareholder since 2002. This was after SABMiller moved the standing gaming and hotel assets into Tsogo Sun as a black economic empowerment (BEE) transaction.
The business performed well over the years. The merger with Gold Reef Resorts in 2011 and the resultant listing on the JSE transformed Tsogo Sun.
But gaming and hotels sector is non-core to SABMiller’s operations and it has concluded that the time is right to exit the investment through a transaction which is beneficial to shareholders of both SABMiller and Tsogo Sun. (VENTURES AFRICA)
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