Tsogo Sun [JSE:TSH] said in a note to shareholders on Friday afternoon that, in order to allow shareholders to directly participate in its gaming and hotel divisions, the board has decided to restructure the group's hotel interests under one holding company - THL - and to proceed with
the separation of Tsogo Sun and THL.
This will culminate in the listing and unbundling of THL.
Tsogo Sun proposes to implement the separation by listing THL on the main board of the JSE and the subsequent distribution in specie by Tsogo Sun of its entire holding of THL shares to shareholders, pro rata to their respective holdings of Tsogo Sun ordinary shares.
Subsequent to the successful implementation of the proposed transaction, Tsogo Sun will comprise only of the gaming division, being casino and alternative gaming operations.
The intention is to change the name of Tsogo Sun to Tsogo Sun Gaming in due course.
THL owns, leases and manages hotels in South Africa as well as several sub-Saharan countries, the Seychelles and Abu Dhabi. THL will also hold the group's minority investment in RBH Hospitality Management and International Hotel Properties, based in the United Kingdom.
The hotels that have been developed as part of the various casino complexes owned by the group will remain with Tsogo Sun and be operated under a management agreement by THL.
The group's 59.2% interest in Hospitality Property Fund will remain owned and consolidated by THL.
The successful completion of the proposed transaction will be subject to suspensive conditions and the approval by the relevant regulatory authorities.