7th Jul 2014 06:29
LONDON (Alliance News) - Brewing giant SABMiller PLC Monday said it could sell all its 39.6% stake in gaming, hotel and entertainment group Tsogo Sun Holdings Ltd, 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, 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 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," SABMiller Chief Executive Alan Clark said in a statement.
"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."
The dale decision comes after SABMiller decided in April to review its investment in the South Africa-based business.
By Steve McGrath; [email protected]; @SteveMcGrath1
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