From SENS
Tsogo Sun, with a market cap of R33.12bn, is trading up on the day gaining nearly 2% on the market (11h30). Tsogo Sun has announced that on 12 May 2014, Tsogo Sun International Limited (Sun International), Grand Parade Investments Limited (GPI), and various of Sun International and GPI’s subsidiaries entered into transaction agreements in terms of which Tsogo will acquire a 40% equity interest in each of SunWest International Proprietary Limited (SunWest) and Worcester Casino Proprietary Limited (Worcester) for an aggregate consideration of R2,185 million.
In terms of the transaction, Tsogo will acquire a 14.9% equity interest in SunWest and a 14.9% equity interest in Worcester from Sun International (South Africa) Limited (“SISA”), a wholly-owned subsidiary of Sun International, and Afrisun Leisure Proprietary Limited, a subsidiary of Sun International, respectively, for an aggregate consideration of R635 million.
Tsogo will subscribe for new shares in SunWest and Worcester for an aggregate subscription price of R1,550 million and each of SunWest and Worcester will undertake a specific share repurchase for the entire equity interest held by GPI and its subsidiaries in SunWest and Worcester for an aggregate cash consideration of R1,550 million.
SunWest, a subsidiary of SISA, conducts the casino, leisure and entertainment business in respect of the GrandWest Casino and Entertainment World at Goodwood in Cape Town. SunWest also owns the hotel business in respect of the Table Bay Hotel situated at the Victoria & Alfred Waterfront in Cape Town and owns a 24.8% equity interest in the Cape Town International Convention Centre Company SOC Limited.
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