: 0 (-100%)
S.Africa's Tsogo Sun CEO to retire, hotel business spin-off to go ahead
(Adds details, shares)
JOHANNESBURG, March 15 (Reuters) - South African hotelier
and casino operator Tsogo Sun said on Friday it is
going ahead with the spinoff of its hotel business, as it
announced its chief executive would retire in June.
Tsogo Sun CEO Jacques Booysen will be replaced by Chris du
Toit, who is the CEO of Galaxy Bingo, which it acquired in 2016.
The company, which operates hotels under brands including
Southern Sun, Garden Court and Holiday Inn, said in May last
year that it intended to hive off and list the business
separately on the Johannesburg Stock Exchange.
It expects the demerger to to take place in June, with
shares in the new business distributed to current shareholders.
"Given that the gaming and hotel divisions operate in
distinctly different markets and service different customers,
there are limited opportunities to leverage synergies within the
group as a whole," it said in a statement.
Tsogo Sun and the new hotel company will enter into a shared
services agreement, which will enable essential services
currently provided by the group and some cost sharing to
Marcel von Aulock, previously a CEO of the group, would lead
the new hotel business, the statement said.
The group's shares were up 3.6 percent at 1241 GMT.
(Reporting by Emma Rumney; Editing by Olivia Kumwenda-mtambo
and Louise Heavens)
© 2019 Thomson Reuters. All rights reserved. Reuters content is the intellectual property of Thomson Reuters or its third party content providers. Any copying, republication or redistribution of Reuters content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters shall not be liable for any errors or delays in content, or for any actions taken in reliance thereon. "Reuters" and the Reuters Logo are trademarks of Thomson Reuters and its affiliated companies.