Tsogo Sun will bring the largest hotel business in SA to public investors

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Tsogo Sun will bring the largest hotel business in SA to public investors
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Investors' calls for Tsogo to break into two specialised businesses have been heeded

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23 May 2019 - 10:27Tsogo Sun is set to list the country’s largest diversified hospitality group on the JSE in June, giving investors exposure to an array of top-rated hotels such as Monte Casino.

The unbundling would be implemented through a distribution of all the ordinary shares in the hotels business to Tsogo Sun’s shareholders, using the ratio of one Tsogo Sun Hotels share for every Tsogo Sun share held. Tsogo Sun provided details about the group unbundling, after it released financial results for the year to March, which it said was a challenging period. Its net profit fell by a quarter during the year because of a decline in property values.

The group declared a final dividend of 56c a share, down 20%. But total dividends for the year were up 84% at 188c a share.

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Translation: over expansion and a crap brand identity has left us skint

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