SABMiller is divesting of its full stake in Tsogo Sun

SABMiller is divesting of its full stake in Tsogo Sun

SABMiller has earnt ZAR7.6bn (US$707m) through the placing of its ordinary shares in South African gaming, hotel and entertainment group Tsogo Sun Holdings. 

The brewer said today (18 July) that it has sold 293,896,315 of its shares in the firm at ZAR25.75. The share placement will conclude on 28 July. 

The move is part of plans by SABMiller to divest of its entire interest in Tsogo Sun. The UK-headquartered firm had a 39.6% stake in the group. The rest of the stock will be acquired by Tsogo's executive management team for ZAR2.8bn, subject to the approval of a loan. 

SABMiller expects to have fully offloaded its stake by 5 September, it said today, earning the company around US$1bn. 

Alan Clark, SABMiller's CEO, said: “We are very pleased with the outcome of this offering of Tsogo Sun shares, which generated strong interest from the investment community.”

He added: “We will seek to reinvest the net proceeds of this disposal in our core growth beverage businesses, including our African operations.”