Johannesburg-listed hotel group, Tsogo Sun, on Friday said it had acquired 25 percent stake in Redefine DBL Hotel Group (Redefine), a hotel management firm, for £8.1 million ($13.6m) with effect from the beginning of this month.
The two companies said this acquisition was strategically critical for both of these firms.
The acquisition will also make available additional cash resources to develop and update Redefine’s business in the United Kingdom (UK) and Europe.
In addition, this purchase will also give Tsogo Sun a chance to utilise Redefine’s management expertise and exposure to new markets.
“(It will also provide Tsogo Sun with) the potential for opportunities to deploy capital in attractive investments in the European market in the future,” Redefine said.
Redefine has more than 60 hotels under its management in many parts of the world.
Tsogo Sun is South Africa’s biggest hotel and casino operator and an associate of SAB Miller Plc, the world’s second biggest brewer.