SABMiller to dump $1bn stake in Tsogo Sun

London - Global brewer SABMiller said on Monday it would dispose of its $1bn stake in Tsogo Sun, the South African-listed gaming, hotel and entertainment group.

SABMiller [JSE:SAB] has a 39.6% shareholding in Tsogo Sun [JSE:TSH] valued at approximately $1.09bn.

It said that following a strategic review, announced April 15, it would dispose of up to all of its holding through a placing of up to 305 million shares to South African and international institutional investors, and a buyback by Tsogo Sun of at least 130 million shares for about $260m.

"Gaming and hotels are not core to our operations and we have concluded that the time is right for us to exit our investment through a transaction which is beneficial to shareholders of both SABMiller and Tsogo Sun," said SABMiller chief executive Alan Clark.

He said the firm would reinvest the proceeds, including in its African operations.

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