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Hospitality and gaming group Tsogo Sun [JSE:TSH] will not be disposing of seven mixed-use casino properties to the separately listed Hospitality Property Fund, nor unbundling its entire holding of Hospitality shares to shareholders, it announced on Monday.
It had become clear at the reconvened general meeting held on Monday morning that not enough shareholders supported the proposed transaction and unbundling, Tsogo said in a statement.
"Accordingly, the Tsogo board of directors had withdrawn the resolutions that were to have been considered at the reconvened General Meeting and the Sale of Shares and Subscription Agreement was terminated by agreement between Tsogo, Hospitality and the remaining parties to that agreement.
"As such, no resolutions were proposed for consideration at the reconvened General Meeting and the meeting terminated," the statement read.
Tsogo was set to shift over R20bn of mixed-use casino properties to its subsidiary, Hospitality Property Fund, with the aim to split along the functions of hotels, property and gaming. Tsogo was set to hold 87% of Hospitality after the transaction, but was expected to unbundle those shares to investors.
Earlier this year, Fin24 reported that Tsogo was slowing investments in expanding existing businesses and making new acquisitions after debt ballooned.
CEO Jacques Booysen told Fin24 of plans to expand further into Africa.
As of 13:50 on Monday, Tsogo's shares had fallen 3.90% to R20.47 per share.
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