Tsogo Sun to buy additional shares in Hospitality Property Fund

  • Reuters
  • Stock Market News
Tsogo Sun to buy additional shares in Hospitality Property Fund
Credit: © Reuters.

JOHANNESBURG, July 3 (Reuters) - Tsogo Sun (JO: TSGJ ) Hotels TGOJ.J said on Friday it proposed to buy additional shares in real-estate investment trust Hospitality Property Fund HPBJ.J as the fund was trading at a substantial discount to its net asset value.

The company said that to buy the additional Hospitality shares Tsogo may have to issue new ordinary shares. Shareholders will have to agree to the move.

Tsogo Sun did not disclose the size of stake it would pick up in the property fund or give details of the deal's value.

Tsogo Sun, one of South Africa's biggest hotel groups, has been hit hard by the impact of the coronavirus crisis.

Last month, the company reported a 9% fall in annual core earnings and scrapped its final dividend for the year as a sharp drop in local and international travel took a toll on its business. already operates a number of hotels owned by Hospitality which make up the majority of both companies' value, Tsogo Sun said.

Tsogo Sun shares were 0.23% higher at 1453 GMT.

Add Chart to Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb

Error: File type not supported

Drop an image here or

100
Please try another search
  • Denoche Padile @Denoche Padile
    Diversification of sector on the cards here, previously in consumer services (travel & leisure) now moving into Real Estate(Fins Investment Instrument). The two compliment each other and will make for a strong portfolio going forward. Keep an eye on this one. It's one for the future definitely. 🤑🤑
    Like 1