Tsogo Sun’s shares trade erratically after HCI proposal
Tsogo Sun’s share price oscillated between 4% falls and rises on Thursday morning as investors digested the proposal by parent Hosken Consolidated Investment (HCI) to move Niveus’s remaining assets into the casino group. Neither HCI’s nor Niveus’s share prices reacted to the deal. Following the sale of its 57.1% stake in wine and brandy maker KWV for R1.15bn to former Del Monte CEO Vivian Imerman’s company Vasari in August and its exhaust manufacturing business Formex for R23.4m to parent HCI in January 2013, Niveus’s remaining operations are Vukani Gaming and Galaxy Bingo. On Wednesday afternoon, HCI proposed to have Tsogo exchange 160-million of its shares with Niveus’s shareholders for its gambling businesses. At the R27.36 Tsogo was trading at on Thursday morning, this would value the 160-million shares at about R4.4bn — a slight discount to Niveus’s market capitalisation of R4.5bn. The deal would leave Niveus with a few properties in Paarl. "The proposed transaction also consti...
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