Hospitality Property Fund acquires Tsogo casinos

Hospitality said the transaction was aimed at broadening its earnings base, while Tsogo said it was in line with plans to restructure.

Picture: Supplied.

JOHANNESBURG - South African property fund Hospitality Property Fund has acquired seven casino and hotel businesses from Tsogo Sun in shares and subscription agreement worth R23 billion, the companies said on Monday.

Hospitality said the transaction was aimed at broadening its earnings base, while Tsogo said it was in line with plans to restructure into three separately listed operating divisions focused on property, gaming and hotel management.

“Upon completion of the transaction, Tsogo will hold approximately 87% of the shares in Hospitality. It is Tsogo’s ultimate intention to unbundle their shareholding in Hospitality to its shareholders,” Tsogo said.