Hospitality Property Fund acquires several Tsogo casinos

In a deal worth R23 billion, the South African fund has acquired seven casino and hotel businesses.

In a shares and subscription agreement worth R23 billion, some $1.72 billion, South African property fund Hospitality Property Fund has acquired seven casino and hotel businesses from Tsogo Sun.

Tsogo said:

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

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