SABMiller in empowerment deal with Tsogo

South African- and London-listed breweries group SABMiller (SAB) on Thursday announced an empowerment deal with its gaming joint venture partner, Tsogo Investment Holding Company (Proprietary) Limited.

Described by the brewer as the most important empowerment deal yet in the South African hospitality sector, the agreement will result in the transfer of both companies’ interests within the hotel and gaming sectors into a new company, to be named Tsogo Sun Holdings (Proprietary) Limited (TSH), which is to be controlled by Tsogo Investments.

The announcement follows SABMiller’s review of its options for its non-core hotel and gaming interests and it believes it will be beneficial to its shareholders.

“This represents an important empowerment transaction for South Africa and a further step in our strategy of focusing SABMiller as an international beer and beverage group,” said SABMiller CE Graham Mackay.

“We are delighted with the development of our partnership with Tsogo Investments and are pleased to see it enter a new phase with this transaction. Over the medium term, SABMiller intends to continue to reduce its investment in hotels and gaming, in keeping with its strategy to divest of non-core interests.”


Ashley Mabogoane, Chairman of Tsogo Investments said, “The formation of TSH represents a major step for Black Economic Empowerment (BEE) and will substantially contribute to the transformation of the hotel and gaming industries within the context of the government’s national BEE agenda.”

Commenting on today’s announcement, Valli Moosa, the South African Minister for Environmental Affairs and Tourism, said: “This represents a landmark BEE transaction for SABMiller, Tsogo Investments and South Africa. It is also a milestone for BEE in the tourism industry, representing the largest BEE transaction to be concluded in this increasingly important sector of the South African economy.”

The transaction is subject to certain conditions, including obtaining Gaming Board and other regulatory approvals, and the finalisation of funding arrangements. It is expected to complete in the first quarter of 2003 and will be earnings neutral for SABMiller in the first full financial year following completion. – I-Net Bridge

Subscribe to the M&G

These are unprecedented times, and the role of media to tell and record the story of South Africa as it develops is more important than ever.

The Mail & Guardian is a proud news publisher with roots stretching back 35 years, and we’ve survived right from day one thanks to the support of readers who value fiercely independent journalism that is beholden to no-one. To help us continue for another 35 future years with the same proud values, please consider taking out a subscription.

Related stories

2019: The ones who left us

From Uyinene Mrwetyana, Oliver Mtukudzi to Xolani Gwala, Mail & Guardian remembers those who have passed on

More battles ahead for domestic worker unions

Florence Sosiba, speaks to the Mail & Guardian about how important domestic workers are and exclusion in the COIDA

“Life has been good to me, considering where I come from” – Xolani Gwala

Just over a year ago, veteran radio presenter Xolani Gwala’s cancer was in remission. He spoke to the Mail & Guardian once he was back on air.

Kanya Cekeshe’s lawyer appeals decision not to grant him bail to the high court

Kanya Cekeshe’s legal team filed an urgent appeal at the Johannesburg high court on Tuesday against Monday’s judgment by magistrate Theunis Carstens.

Leader’s principal aim to build IFP

Gravitas: Velenkosini Hlabisa brings his experience to his new post as leader of the Inkatha Freedom Party.

Police Minister Bheke Cele addresses Jeppestown

Police minister Bheki Cele visited Jeppestown on Tuesday to speak to business owners and community leaders.
Advertising

Subscribers only

The shame of 40 000 missing education certificates

Graduates are being left in the lurch by a higher education department that is simply unable to deliver the crucial certificates proving their qualifications - in some cases dating back to 1992

The living nightmare of environmental activists who protest mine expansion

Last week Fikile Ntshangase was gunned down as activists fight mining company Tendele’s expansions. Community members tell the M&G about the ‘kill lists’ and the dread they live with every day

More top stories

The high road is in harm reduction

While the restriction of movement curtailed the health services for people who use drugs in some parts of the world, it propelled other countries into finding innovative ways to continue services, a new report reveals

Khaya Sithole: Tsakani Maluleke’s example – and challenge

Shattering the glass ceiling is not enough, the new auditor general must make ‘live’ audits the norm here in SA

State’s wage freeze sparks apoplexy

Public sector unions have cried foul over the government’s plan to freeze wages for three years and have vowed to fight back.

‘Veteran’s stripes’ vs ‘kind and fair’

This weekend the Democratic Alliance will choose between two starkly different visions for its future
Advertising

press releases

Loading latest Press Releases…

The best local and international journalism

handpicked and in your inbox every weekday