The leisure and gaming group said 29581618 Tsogo Sun Hotels ordinary shares were placed with qualifying institutional investors at a price of R4.05 an ordinary share at the closing of the book. It said the placing price represented a 4.5percent discount of the closing price of Tsogo Sun Hotels ordinary shares on Friday, June 21.
The book build comes weeks after the group's separation of the hotel interests culminated in the unbundling and listing of Tsogo Hotels Limited (THL).
Asief Mohamed, the chief investment officer of Aeon Asset Management, said the sale via the book build was a separate decision by the international investors to sell Tsogo Sun, hence the drop in price after the news came out that international investors wanted to sell.
“The unbundling was initiated by the management of the combined entity before the unbundling. In effect, it is two separate decisions by two different decision makers,” he said.