London - Britain-based brewer SABMiller will sell its $1.09-billion (800-million-euro) stake in South African leisure division Tsogo Sun, it said on Monday.
SABMiller, which is listed in London and Johannesburg, said in a statement that after a strategic review it will dispose of its 39.6-percent stake in Tsogo Sun via a share placing and buyback.
The firm added it will sell up to 305 million ordinary shares in a secondary placing and has signed an agreement for Tsogo Sun to buy back 130 million ordinary shares for $260 million.
“The business has performed well over the years,” said SABMiller chief executive Alan Clark.
“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.”
Tsogo Sun, which is also listed in Johannesburg, has 92 hotels and 14 gaming and entertainment venues in six of South Africa's nine provinces, as well as theatres, cinemas, restaurants, bars and conference facilities. - Sapa-AFP