Tsogo builds Hospitality stake

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Tsogo builds Hospitality stake

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Published Date: 2021-01-06 | Source: Stephen Gunnion | Author: Stephen Gunnion

Tsogo builds Hospitality stake

The hotel operator has extended the closing date for its general offer to 29 January.

Tsogo Sun Hotels continues to mop up shares in Hospitality Property Fund as its offer to buy out minority shareholders draws to an end. The general offer closes on 29 January after Tsogo extended it by a two weeks just over a week ago.

In an update yesterday, Hospitality said Tsogo had acquired 95.79% of its shares, up from 75% in October when it launched its offer of 1.77 of its shares for every Hospitality share. The takeover will result in Hospitality delisting and becoming a subsidiary of Tsogo.

The two companies say the merger will result in cost savings, simplify Tsogo's operating structure and give Hospitality shareholders shares in a more liquid stock. Hospitality owns a portfolio of 54 properties with more than 9,000 rooms across the country. Hotels owned by Hospitality and operated by Tsogo Sun Hotels make up the majority of both groups' economic value.

Hospitality's shares rose 1.9% to R2.70 yesterday. Tsogo Sun Hotel fell 5.8% to R1.47.





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