Tsogo Sun Holdings to unbundle its business

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The South African hotel, gaming and entertainment group bids to 'unlock value' for its shareholders.

File: South African hotel, gaming and entertainment group Tsogo Sun Holdings.The company also wants to list on the Johannesburg Stock Exchange’s main board on 12 June, so as to unlock value for shareholders.

The unbundling of Tsogo Sun hotels would see the distribution of all the ordinary shares in the business to Tsogo Sun’s shareholders on a one-to-one ratio.But a decline in property values saw the hotels business slip to a loss of R59-million in the last financial year, causing net profit to fall by a quarter.Income was boosted by a 21-percent increase in net gaming wins, with total income rising 18-percent and operating profit up 13-percent to R3.1-billion.

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Fall in property values result in earnings slump for Tsogo SunAdjusted HEPS are expected to be between 3% and 7% lower than in the previous year
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