South Africa’s Hospitality Property Fund and Tsogo Sun Holdings have agreed that Hospitality will acquire ten hotels from Tsogo in exchange for shares, a financial statement said on Wednesday, advising shareholders to exercise caution in trading.
The deal will see Hospitality convert its dual-class shares to single-class and issue ordinary shares to Tsogo in exchange for the properties. The transactions will be completed through the holding companies or their subsidiaries.
The Tsogo portfolio comprises Garden Court South Beach; Garden Court ORTambo; Garden Court Milpark; Garden Court Polokwane; Stay Easy Century City; Garden Court Kimberley; Southern Sun Newlands; Stay Easy Rustenburg; Southern Sun Bloemfontein and Sun Square Cape Town.