SABMiller pulls out of South Africa's Tsogo Sun Holdings

SABMiller, the world’s second-largest beer brewer, is reportedly selling its stake in the South African hotel and casino group Tsogo Sun Holdings. SABMiller's 39.6-percent stake in Tsogo Sun is worth about 11.7 billion South African rand, or about $1.1 billion, SABMiller said and as reported by The New York Times.

The brewer plans to sell most of its stake through a private placement to institutional shareholders this month.

About a third of the stake would be sold to Tsogo Sun in a buyback of 130 million shares for about $260 million, a discount to the private placement price. It is subject to approval by Tsogo Sun shareholders.

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“Gaming and hotels are not core to our operations and we have concluded that the time is right for us to exit our investment,” Alan Clark, CEO of SABMiller, said in a statement.

SABMiller first took a stake in Tsogo Sun in 2002.

Tsogo Sun owns 92 hotels in Africa and the Middle East, and operates 14 casinos and resorts in South Africa.

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