Tsogo Sun Merges with Gold Reef

21st February 2010 (Last Updated February 21st, 2010 18:30)

SABMiller will merge its South African hotels and gaming company, Tsogo Sun, with Gold Reef Resorts through an all-share merger to create the largest gaming group in Europe, Middle East and Africa. Gold Reef will acquire the entire issued share capital of Tsogo Sun in exchange for t

SABMiller will merge its South African hotels and gaming company, Tsogo Sun, with Gold Reef Resorts through an all-share merger to create the largest gaming group in Europe, Middle East and Africa.

Gold Reef will acquire the entire issued share capital of Tsogo Sun in exchange for the issue of new shares in Gold Reef while SABMiller will exchange its 49% interest in Tsogo Sun for a 39.7% interest in the enlarged R21bn ($2.7bn) business.

The new group is expected to benefit through exposure to a more diversified portfolio of assets and income streams, the company said.

SABMiller is one of the largest brewers in the world, while Gold Reef is a gaming and entertainment company in South Africa.