SABMiller earns R7.6bn from Tsogo Sun stake sale
South African brewer SABMiller would reinvest the proceeds from the sale of its shareholding in JSE-listed gaming, hotel and entertainment group Tsogo Sun Holdings, in its core growth beverage businesses, including its African operations, CEO Alan Clark said on Friday.
The company on Friday announced that it had sold 293.9-million of the ordinary shares it held in Tsogo Sun for R25.75 each, for a total gross consideration of R7.6-billion.
This followed an announcement earlier this month that it would dispose of its 39.6% shareholding in the entertainment company, as it was not core to SABMiller’s operations.
“We are very pleased with the outcome of this offering of Tsogo Sun shares, which generated strong interest from the investment community.
“This is testament to the high-quality business and management of Tsogo Sun and we wish the management team, directors, employees and shareholders of Tsogo Sun the very best for the future,” Clark said in a statement.
In addition to the share placing, members of Tsogo Sun’s executive management team would also, subject to shareholder approval of a loan facility, buy back a further 7.77-million ordinary shares from SABMiller at the placing price.
Tsogo Sun would also then buy back the balance of SABMiller’s shareholding in the entertainment company – 133.59-million ordinary shares – for an aggregate consideration of R2.8-billion.
SABMiller expected the share repurchase to be effective on or about September 5.
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