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/ 25 January 2010
Budget hotels operator City Lodge Hotels expects to report a 12% to 17% decline in full-year normalised headline earnings per share.
The South African Commercial Catering and Allied Workers’ Union’s talks with JSE-listed hotel group City Lodge have deadlocked.
JSE-listed City Lodge Hotels has concluded a broad-based black economic empowerment (BEE) transaction including its employees, the University of Johannesburg’s school of tourism and hospitality and black-controlled investment company Vuwa Investments, the company said late on Wednesday.
Listed hotel and gaming group Sun International will proceed with the sale of its entire 38,6% stake in City Lodge Hotels to Sun International shareholders for a total of R627-million, in exchange for repurchasing its own shares from them, the company said on Tuesday.
Listed hotels and gaming group Sun International plans to dispose of its 38,6% stake in fellow hotel group City Lodge Holdings for R627-million, equating to R38,50 per share. Once the transaction is completed, BEE individuals and groupings will hold more than 25% interest in Sun International and its subsidiaries.
An objection has been lodged over an error on the 2013 property valuation roll relating to a property belonging to the Gupta family, the City says.