Tsogo places leftover hotel shares

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Tsogo places leftover hotel shares

Published Date: 2019-06-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tsogo places leftover hotel shares

Some shareholders were unable to receive stock in Tsogo Sun Hotels in this month's unbundling.

Tsogo Sun sold close to 30 million shares in Tsogo Sun Hotels in an accelerated bookbuild yesterday after shareholders who were due to receive the stock were unable to do so.

The group listed Tsogo Sun Hotels on 12 June and unbundled the shares to its shareholders on a one-for-one basis two days later. However, shareholders holding 29.6 million shares indicated they couldn't take ownership of the stock. Instead, they will receive the net proceeds from yesterday's bookbuild.

The shares were sold to qualifying institutional investors at R4.05 each, a 4.5% discount to the hotel group's closing price last Friday.

Tsogo unbundled its hotels business to give shareholders greater investment choice and the ability to better manage their exposure to gaming and hotels separately. It retained its casino and alternative gaming operations.

Meanwhile, shareholders at its general meeting yesterday approved its request to change its name to Tsogo Sun Gaming. The change is expected to take effect from 6 August.

Tsogo Sun's shares fell 1.9% to R16.19 yesterday while Tsogo Sun Hotels declined by 0.9% to R4.20.





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