| Thu 8 Dec 2011, 9:25 | | TSH - Tsogo Sun Holdings Limited - Acquisition of an additional effective |
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TSH
TSH
TSH - Tsogo Sun Holdings Limited - Acquisition of an additional effective
interest in Hotel Formula 1 (Pty) Ltd and related property companies
Tsogo Sun Holdings Limited
Incorporated in the Republic of South Africa
(Registration number 1989/002108/06)
Share code: TSH
ISIN: ZAE000156238
("Tsogo Sun" or "the Company" or "the Tsogo Sun Group")
ACQUISITION OF AN ADDITIONAL EFFECTIVE INTEREST IN HOTEL FORMULA 1 (PTY) LTD AND
RELATED PROPERTY COMPANIES ("HOTEL FORMULA 1")
Shareholders are advised that on 7 December 2011 Southern Sun Hotels (Pty) Ltd
("Southern Sun"), a wholly-owned subsidiary of Tsogo Sun, reached agreement with
Accor Group ("Accor") to acquire an additional 52,6% interest in Hotel Formula 1
("the transaction"), bringing the Tsogo Sun Group`s effective shareholding in
Hotel Formula 1 to 100%. The purchase price of R300 million comprises R264
million attributable to the equity value of Hotel Formula 1 and R36 million
relating to the acquisition of a loan between Accor and Hotel Formula 1. The
transaction is subject to regulatory approvals including, inter alia, the
Competition Authorities and the South African Reserve Bank.
The Hotel Formula 1 business has been at the forefront of the budget
accommodation market in South Africa since its formation in 1991, as a joint
venture between Accor and Southern Sun. Hotel Formula 1 owns 20 hotels across
the country with some 1 474 rooms, in addition to managing 3 hotels already
wholly owned by Southern Sun. For the year ended 31 December 2010, which
benefitted from the 2010 FIFA World Cup, Hotel Formula 1 reported Income of
R125.7 million and Earnings before interest depreciation amortisation and rental
charges ("Ebitdar") of R66.7 million. The hotels will continue to operate under
the Hotel Formula 1 brand in terms of an exclusive trademark license agreement
entered into between the parties.
This acquisition is consistent with the stated growth strategy of the Tsogo Sun
Group to continue to invest in its core gaming and hotel operations, both
locally and abroad.
Johannesburg
8 December 2011
Sponsor
Deutsche Securities (SA) (Proprietary) Limited
Date: 08/12/2011 09:25:17 Produced by the JSE SENS Department.
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