Tsogo Sun ditches R23 billion Casino and Hotel deal

By
Font size: Decrease font Enlarge font
Tsogo Sun, the owners of Southern Sun Cullinan Cape Town, halts sale of casino and hotel businesses to Hospitality Property Fund. Tsogo Sun, the owners of Southern Sun Cullinan Cape Town, halts sale of casino and hotel businesses to Hospitality Property Fund.

Tsogo Sun [JSE:TSH], the hotel and gaming group has suspended the sale of its casino and hotel businesses to Hospitality Property Fund [JSE:HPB] after failing to secure enough support from shareholders.

In July, Tsogo Sun said it would sell a portfolio of seven of its casino and hotel businesses to Hospitality Property Fund in a shares-and-subscription deal worth R23 billion ($1.72 billion).

It had become clear at the reconvened general meeting held on Monday morning that not enough shareholders supported the proposed transaction and unbundling, the company said in a statement.

“The sale of shares and subscription agreement has been terminated by agreement between Tsogo, Hospitality and the remaining parties to that agreement,” Tsogo said.

Hospitality said in July it would acquire the businesses in a shares and subscription agreement and Tsogo was set to hold 87% of Hospitality after the transaction.

Tsogo said at the time the sale was part of plans to split into three separately listed divisions focused on property, gaming and hotel management.

Earlier this year, Tsogo reported that it was slowing investments in expanding existing businesses and making new acquisitions after debt ballooned.

CEO Jacques Booysen said the company had plans to expand further into Africa.

As of 13:50 on Monday, Tsogo's shares had fallen 3.90% to R20.47 per share.

Read more on:

Listed Property / REITs  |  Hotels and Leisure  |  Tsogo Sun  |  Hospitality Property Fund Ltd (HPF)  |  Jacques Booysen
IHS Conference Nedbank 2018

  • Email to a friend Email to a friend
  • Print version Print version

Newsletter


Please enter your e-mail address below and click 'Subscribe'.