RNS Number : 4573B
SABMiller PLC
18 February 2011
 



18 February 2011

 

SABMiller announces the implementation of its hotels and gaming merger in South Africa

SABMiller plc announces that all the conditions precedent relating to the merger of  Tsogo Sun, its South African hotels and gaming associate, with Gold Reef Resorts Limited, a Johannesburg Stock Exchange listed business with premier gaming assets in five of South Africa's provinces, have been fulfilled or waived (where appropriate). Accordingly, the transaction has become unconditional. 

The closing of the transaction is expected to take place on 24 February 2011 and will be effected through the acquisition by Gold Reef of the entire issued share capital of Tsogo Sun in exchange for the issue of new shares in Gold Reef.  SABMiller will exchange its 49% interest in Tsogo Sun for a 39.7% interest in the enlarged Gold Reef/Tsogo Sun business, which will continue to be listed on the JSE and whose name will be changed to Tsogo Sun Holding Limited

The merger will create the premier gaming and hotel company in South Africa and will enable Gold Reef and Tsogo shareholders to benefit from the earnings, geographical and market segment diversification achieved through the exposure to the respective portfolios of assets and income streams of Gold Reef and Tsogo.  Notwithstanding recent tough trading conditions, these businesses are well positioned to benefit from anticipated medium term improving economic conditions and increasing consumer spending across South Africa.

 

ENDS

Notes to editors:

About SABMiller plc

SABMiller is one of the world's largest brewers with brewing interests and distribution agreements across six continents. The group's wide portfolio of brands includes premium international beers such as Pilsner Urquell, Peroni Nastro Azzurro, Miller Genuine Draft, and Grolsch, as well as market-leading local brands such as Aguila, Castle, Miller Lite, Snow and Tyskie. SABMiller is also one of the world's largest bottlers of Coca-Cola products.

In the year ended 31 March 2010 the group reported US$3,803 million in adjusted pre-tax profit and group revenue of US$26,350 million. SABMiller is listed on the London and Johannesburg stock exchanges.

About Tsogo Sun

Following the implementation of the merger, which was originally announced on the Stock Exchange News Service of the JSE on 18 February 2010, Tsogo Sun will be South Africa's leading hotel, gaming and entertainment company and will consist of two divisions, namely Gaming and Hotels.

Tsogo Sun's gaming operations will consist of 14 casinos represented in 6 of South Africa's provinces. It will have an interest in the following resorts:

·              Montecasino, Gauteng                                                                     (100.00%)

·              Gold Reef City, Gauteng                                                                  (100.00%)

·              Silverstar Casino, Gauteng                                                               (100.00%)

·              Suncoast Casino and Entertainment World, KwaZulu-Natal                  (73.50%)

·              Mykonos Casino, Western Cape                                                       (70.36%)

·              Golden Horse Casino, Kwa-Zulu Natal                                                (100.00%)

·              The Ridge Casino, Mpumalanga                                                        (100.00%)

·              Emnotweni Casino, Mpumalanga                                                      (100.00%)

·              Blackrock Casino, Kwa-Zulu Natal                                                    (100.00%)

·              Goldfields Casino, Free State                                                            (100.00%)

·              Caledon Casino, Western Cape                                                         (100.00%)

·              Garden Route Casino, Western Cape                                                (85.00%)

·              Hemmingways Casino, Eastern Cape                                                (80.00%)

·              Queens Casino , Eastern Cape                                                         (25.10%)

Tsogo Sun also owns the Southern Sun hotels group, which was founded in 1969 with the Beverly Hills Hotel in Umhlanga, and has grown to be the largest hotel group in South Africa, with approximately 90 hotels and 14 438 rooms at the end of 2010.

 

The Southern Sun Hotel group operates in all market segments from deluxe to budget, under a variety of brands including Southern Sun, Garden Court and StayEasy, which principally service "people at work" which includes the key, corporate, government, conference, airline and incentive segments of the market, making up approximately 75% of revenue. Southern Sun is also the largest timeshare operator in South Africa.

 

Internationally the group has expanded in Africa, Seychelles and the Middle East and continues to look for new investment opportunities in these regions.

This announcement is available on the company website: www.sabmiller.com

High resolution images are available for the media to view and download free of charge from the News and Media section of www.sabmiller.com or www.newscast.co.uk

Contact

SABMiller plc


Tel: +44 20 7659 0100

Sue Clark

Director of Corporate Affairs

Tel: +44 20 7659 0184

Gary Leibowitz

Senior Vice President, Investor Relations

Tel: +44 20 7659 0174

Nigel Fairbrass

Head of Media Relations

Tel: +44 7799 894265

This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or acquire securities of SABMiller plc (the "Company") or any of its affiliates in any jurisdiction or an inducement to enter into investment activity.

This announcement includes "forward-looking statements".  These statements may contain the words "anticipate", "believe", "intend", "estimate", "expect" and words of similar meaning.  All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, business strategy, plans and objectives of management for future operations (including development plans and objectives relating to the Company's products and services) are forward-looking statements.  These forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause the actual results, performance or achievements of the Company to be materially different from future results, performance or achievements expressed or implied by such forward-looking statements.  These forward-looking statements are based on numerous assumptions regarding the Company's present and future business strategies and the environment in which the Company will operate in the future.  These forward-looking statements speak only as at the date of this announcement.  The Company expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in this announcement to reflect any change in the Company's expectations with regard thereto or any change in events, conditions or circumstances on which any such statement is based. Any information contained in this announcement on the price at which the Company's securities have been bought or sold in the past, or on the yield on such securities, should not be relied upon as a guide to future performance.


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