Tsogo Sun in the HPF R23 billion business

CAPE TOWN – The largest operator of hotels and casinos in South Africa, Tsogo Sun, has sold seven of its hotel businesses to the Hospitality Property Fund (HPF) under the umbrella of the National Bank. a subscription agreement of 23 billion rand.

In a statement issued yesterday by Tsogo Sun on the Exchange News Service, the hotel operator said the transaction was consistent with the board's strategy to restructure Tsogo Sun into three divisions distinct and distinct. division and a hotel management division.

"The board of directors expects that the separation of Tsogo Sun into three targeted divisions – and separate listed entities – will open value and offer a wider choice of investment to Tsogo Sun's shareholders. "At the end of the transaction, Hospitality should own investment properties with a total market value of about R36 billion," the company said in the statement. [19459007

Tsogo stated that at the end of the transaction, he would hold about 87 percent of HPF's shares. "Tsogo's ultimate intention is to unbundle their stake in Hospitality to its shareholders. shareholders and it has guaranteed Hospitality to do so at a time and in a manner that does not have negative consequences on Hospitality ", states the statement.

Tsogo stated to have appointed PSG Capital as an independent expert to formulate appropriate recommendations in the form of an opinion of fairness as required in terms of registration requirements to the JSE. "The independent expert is finalizing his opinion on the transaction, this opinion, as well as the views of the board of directors on the transaction will be detailed in the circular to be sent to the shareholders of Tsogo.

"On the basis of the initial valuation of the transaction, subject to the opinion of an independent expert, the board supports the transaction," the statement said.

Tsogo revealed earlier this year that his investment expenditures in the year to March had decreased to about R3.25bn.

These Investments included the purchase of Gameco in exchange for stock and 1.7 billion rand in cash, according to a Bloomberg report.

The company said its net debt had increased by 4% to 12.5 billion rand, against 3.58 billion rand at the end of 20 13, according to the data.

Tsogo's chief executive officer, Jacques Booysen, had also expressed the company's intention to expand further in Africa, with the addition of the following. plans to open a Garden Court in Zambia and a Southern Sun Hotel in Ghana. The shares of Tsogo climbed from 1.31% on the JSE yesterday to close at R20.92

-BUSINESS REPORT