Tsogo Sun, Liberty announce Cullinan deal
According to a statement by Tsogo‚ subsidiary Southern Sun will increase its equity interest in Cullinan by 10% to 60% by subscribing for additional shares in Cullinan for R100m. Cullinan will buy various hotel assets from Southern Sun for R100m and from Liberty group for R1.27bn.
Southern Sun and Liberty are currently equal shareholders in Cullinan. Southern Sun manages three hotels owned by Cullinan‚ namely Southern Sun Cullinan‚ Southern Sun Katherine Street and Garden Court Morningside. Southern Sun also manages a number of hotel properties on behalf of Liberty Group and has licensed Liberty Group to use certain of its trademarks and trade names in these properties.
"The investment by Tsogo of a net R762m pursuant to the transaction is consistent with its growth strategy of allocating capital to attractive opportunities‚" the company said.
Liberty said in the transaction supported its strategy of becoming the leading wealth-management company in Africa. There are numerous initiatives that are currently being considered as part of the Stanlib Direct Property investment strategy.