Tsogo Sun to acquire betting platform Betcoza
The hotel and gaming group will acquire a 50.1% stake in SA’s premier sports betting and entertainment site for R49m
In a move that helps Tsogo Sun Hotels gain a foothold in SA’s online betting industry, the gaming and leisure group will, through its subsidiary Alternative Gaming, acquire online betting platform Bet.co.za (Betcoza).
Tsogo Sun will acquire a 50.1% stake in Betcoza, SA’s premier sports betting and entertainment site for R49m. As part of the deal, it will also acquire indirect interests in retail sports betting licences. Betcoza has retail sports betting licences that allow it to operate in Gauteng and Limpopo.
“The acquisition represents a strategic opportunity for Tsogo Sun Gaming to enter the online betting space via an existing, developing business,” the company said in a statement to shareholders on Friday.
The value of Betcoza’s net assets comprising the stake Tsogo Sun is acquiring is worth R37.6m, the hotelier said.
“The loss attributable to the net assets that are the subject of the acquisition was R3.5m for the year ended March 31 2020,” it said.
Rival Sun International has been bolstering its online gambling platform Sunbet with its recent introduction of bet games and live games from July.
Tsogo Sun operates in a sector that has been struggling to survive as the coronavirus lockdowns forced hoteliers to shut their doors or operate within strict limitations. It recently bought more shares in its subsidiary Hospitality Property Fund (HPF), and is placing its bets on the recovery of SA’s hotel sector.
In 2019, Tsogo Sun was broken into two parts: Tsogo Sun Hotels and Tsogo Sun Gaming, its gambling business. The two entities are listed separately on the JSE.
Shares in Tsogo Sun closed trade on Friday 1.12% higher at R1.80c.
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