CAPE TOWN – The Tsogo Sun board and the board of 59percent-held subsidiary Hospitality Property Fund had agreed the terms of the acquisition of all of Hospitality’s shares and the delisting of Hospitality, the groups said in a joint announcement yesterday evening.
The acquisition would be settled by Tsogo by the issue of shares at a ratio of 1.77 Tsogo shares per Hospitality share to be acquired.
Tsogo had received an in-principle indication of support from Coronation, representing more than 75percent of the voting rights entitled to vote in favour of resolutions required to be passed by Hospitality.
Further details on the deal were expected to be announced in due course.
Hospitality, listed on the main board of the JSE since 2006, is a specialised real estate investment trust in the hospitality industry, comprises 54 properties with more than 9000 rooms in South Africa.
Tsogo has more than 100 hotels across all sectors of the market in South Africa, Seychelles and the Middle East.
Tsogo’s share price fell 3.7percent to R1.30 yesterday, well off the R3.90 it traded at the beginning of the year. Hospitality’s share price was unchanged at R2.40.