Tsogo Sun, the largest casino operator in South Africa, has sold off seven of its venues to the Hospitality Property Fund.
The deal includes the famous Montecasino location in Sandton, Johannesburg. The acquisition by HPF is on the basis of a shares and subscription deal, worth R23bn (US€1.4bn).
Tsogo Sun, which operates a string of hotels and casinos across South Africa, said in a statement that its strategy was to restructure the business into three operating divisions: properties, gaming and hotel management.
When the deal is completed, Tsogo will own about 87 per cent of the shares in HPF that it says it will eventually disperse to its shareholders. Earlier this year Tsogo said that it planned to expand further into Africa, notably in Zambia and Ghana.
