JOHANNESBURG, July 9 (Reuters) - South African propertyy fund Hospitality Property Fund has acquired seven casino and hotel businesses from Tsogo Sun in a shares and subscription agreement worth 23 billion rand ($1.72 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 percent of the shares in Hospitality. It is Tsogo’s ultimate intention to unbundle their shareholding in Hospitality to its shareholders,” Tsogo said.
$1 = 13.3890 rand Reporting by Ed Stoddard. Editing by Jane Merriman