On 15 April 2014, SABMiller announced that it was conducting a strategic review of its investment in JSE-listed gaming, hotel and entertainment group Tsogo Sun Holdings Limited.
SABMiller currently has an effective 39.6% shareholding in Tsogo Sun valued at approximately ZAR 11.7bn based on the closing share price of ZAR 26.90 on 4 July 2014. SABMiller, in cooperation with Tsogo Sun, has now completed its strategic review and has decided to dispose of up to all of its ordinary shares in Tsogo Sun through two conditional transactions:
“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,” said SABMiller chief executive Alan Clark. “The business has performed well over the years. The merger with Gold Reef Resorts in 2011, and the resultant listing on the JSE, has transformed Tsogo Sun. 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.”
Source: SABMiller
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