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...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.