HCI consolidates its hold with Sactwu deal
Empowerment conglomerate increases stake in Tsogo Sun
Empowerment conglomerate Hosken Consolidated Investments (HCI), which has investments ranging from media to mining, is consolidating its holding in gaming and leisure group Tsogo Sun. HCI will take over the holding of the Southern African Clothing and Textile Workers Union (Sactwu) in a deal that will see it take control of a further 18-million shares for R408m. The move further increases its hold over a group in which it already held 51.18% of its shares. Tsogo Sun has holdings in gaming, hotel and entertainment assets, operates in eight countries and has a portfolio of 110 hotels comprising 18,752 hotel rooms. HCI said it did the deal because it saw an opportunity to increase its holding at a favourable valuation. “The acquisition represents an opportunity for HCI to meaningfully increase its interest in Tsogo Sun at an attractive price.” Tsogo Sun has lost a third of its value over the past two years but has seen a 21% increase in revenue to R7.7bn, and a 14% rise in earnings bef...
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