18th Jul 2014 11:23
LONDON (Alliance News) - Brewing giant SABMiller PLC Friday said it has sold, though its subsidiary SABSA Holdings Ltd, 293.9 million Tsogo Sun Holdings Ltd shares at ZAR25.75 per placing share for a total fee of ZAR7.6 billion.
Earlier, this month SABMiller said it could sell its 39.6% stake in gaming, hotel and entertainment group Tsogo, disposing of a business it no longer considers part of its main portfolio and using the funds to invest in its remaining businesses.
In a statement on July 7, SABMIller said it will sell up to the whole holding, valued at about ZAR11.7 billion, or about USD1.09 billion, by selling 305 million shares in a secondary placing into the market, and through a deal whereby Tsogo Sun will buy back about 130 million shares for ZAR2.8 billion or about USD260 million.
SABMiller Friday said Tsogo Sun's executive management team have committed to the purchase of 7.8 million shares in Tsogo Sun from SABMiller at the placing price.
The balance of SABMiller's 133.6 million shares in Tsogo Sun will be repurchased by Tsogo Sun for ZAR2.8 billion.
Following the executive purchase and the repurchase, SABMiller will no longer hold any shares in Tsogo Sun.
SABMiller said it expects the repurchase to be effective on or around September 5.
SABMiller shares were quoted up 0.1% at 3,341.50 pence Friday.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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