SABMiller may sell stake worth $1.042 bn in S African leisure firm Tsogo Sun

SABMiller, the world's second-largest brewer by sale after Anheuser-Busch InBev, yesterday said that it may sell its stake in gaming and leisure group Tsogo Sun Holdings to investment conglomerate Hosken Consolidated Investments (HCI).

SABMiller, which holds 39.6-per cent stake worth $1.042 billion in Tsogo Sun, said it was reviewing strategic options for its shareholding in Johannesburg Stock Exchange-listed Tsogo Sun.

''This investment is not considered to be core to the beverage operations of SABMiller and therefore SABMiller is reviewing its strategic options for its shareholding, however, there can be no certainty that the review will result in SABMiller taking any action,'' the brewer said in a statement.

HCI, Tsogo Sun's largest shareholder with 41.3 per cent stake, said it was assisting SABMiller with the review, an indication that it may buy most of SABMiller's stake.

Founded in 1969 by hotelier Sol Kerzner under the brand Southern Sun and having separate hotel, gaming, and casino and entertainment divisions, the company later rebranded all these units under Tsogo Sun Holdings.

After several mergers and acquisitions, Tsogo Sun expanded over four decades and now boasts of over 14, 500 hotel rooms across South Africa, Africa, the Seychelles and the Middle East, 14 gaming and entertainment destinations, theatres, cinemas, restaurants and bars, and over 250 conference and banqueting facilities, including the internationally and locally renowned Sandton Convention Centre.