A logo of South Africa's biggest gaming and hotel operator Tsogo Sun, is seen at Montecasino in Johannesburg
S.Africa's Tsogo Sun CEO to retire, hotel business spin-off to go ahead
JOHANNESBURG (Reuters) - South African hotelier and casino operator Tsogo Sun said on Friday it is going ahead with the spinoff of its hotel business, as it announced its chief executive would retire in June.
Tsogo Sun CEO Jacques Booysen will be replaced by Chris du Toit, who is the CEO of Galaxy Bingo, which it acquired in 2016.
The company, which operates hotels under brands including Southern Sun, Garden Court and Holiday Inn, said in May last year that it intended to hive off and list the business separately on the Johannesburg Stock Exchange.
It expects the demerger to to take place in June, with shares in the new business distributed to current shareholders.
"Given that the gaming and hotel divisions operate in distinctly different markets and service different customers, there are limited opportunities to leverage synergies within the group as a whole," it said in a statement.
Tsogo Sun and the new hotel company will enter into a shared services agreement, which will enable essential services currently provided by the group and some cost sharing to continue.
Marcel von Aulock, previously a CEO of the group, would lead the new hotel business, the statement said.
The group's shares were up 3.6 percent at 1241 GMT.
(Reporting by Emma Rumney; Editing by Olivia Kumwenda-mtambo and Louise Heavens)
First Published: 2019-03-15 14:31:34
Updated 2019-03-15 15:09:51
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