Tsogo Sun Hotels Limited (JSE:TGO) made an offer to acquire additional 24.5% stake in Hospitality Property Fund Limited (JSE:HPB) from Coronation Fund Managers Limited (JSE:CML) and other shareholders for approximately ZAR 340 million on September 30, 2020. Tsogo Sun Hotels will issue 1.77 shares per Hospitality share acquired by Tsogo Sun Hotel. Hospitality and Tsogo Sun Hotels intend entering into an implementation agreement that will include the details of the proposed transaction.

An application will be made for the delisting of all Hospitality shares from the main Board of the Johannesburg Stock Exchange, being the securities exchange operated by the JSE Limited. Tsogo Sun Hotels has received a non-binding, in principle indication of support from Coronation, representing, as at the date hereof, more than 75% of the voting rights entitled to vote in favor of all resolutions required to be passed by the Hospitality shareholders in order to implement the proposed transaction, should it proceed. In the event, 90% stake is acquired in Hospitality Property Fund Limited, Tsogo Sun Hotels Limited will acquire the remaining stake via compulsory acquisition.

The general meeting of Hospitality Property Fund Limited shareholders will be held on November 19, 2020. As of November 19, 2020, Hospitality Property Fund Limited shareholders has approved the transaction. As of December 17, 2020, the offer becomes unconditional.

The offer is expected to close on December 11, 2020. As of December 17, 2020, the offer is expected to close on January 15, 2021. As of December 28, 2020, offer period has been extended till January 29, 2021.

Investec Bank Limited (JSE:INLP) acted as financial advisor and Edward Nathan Sonnenbergs Inc. acted as legal advisor for Tsogo Sun Hotels and Hospitality. Computershare Investor Services (Proprietary) Limited acted as transfer secretary to Hospitality Property Fund Limited.