TSH - Tsogo Sun Holdings Limited - Acquisition of an additional effective

TSH - Tsogo Sun Holdings Limited - Acquisition of an additional effective       
interest in Hotel Formula 1 (Pty) Ltd and related property companies            
Tsogo Sun Holdings Limited                                                      
Incorporated in the Republic of South Africa                                    
(Registration number 1989/002108/06)                                            
Share code: TSH                                                                 
ISIN: ZAE000156238                                                              
("Tsogo Sun" or "the Company" or "the Tsogo Sun Group")                         
ACQUISITION OF AN ADDITIONAL EFFECTIVE INTEREST IN HOTEL FORMULA 1 (PTY) LTD AND
RELATED PROPERTY COMPANIES ("HOTEL FORMULA 1")                                  
Shareholders are advised that on 7 December 2011 Southern Sun Hotels (Pty) Ltd  
("Southern Sun"), a wholly-owned subsidiary of Tsogo Sun, reached agreement with
Accor Group ("Accor") to acquire an additional 52,6% interest in Hotel Formula 1
("the transaction"), bringing the Tsogo Sun Group`s effective shareholding in   
Hotel Formula 1 to 100%. The purchase price of R300 million comprises R264      
million attributable to the equity value of Hotel Formula 1 and R36 million     
relating to the acquisition of a loan between Accor and Hotel Formula 1. The    
transaction is subject to regulatory approvals including, inter alia, the       
Competition Authorities and the South African Reserve Bank.                     
The Hotel Formula 1 business has been at the forefront of the budget            
accommodation market in South Africa since its formation in 1991, as a joint    
venture between Accor and Southern Sun. Hotel Formula 1 owns 20 hotels across   
the country with some 1 474 rooms, in addition to managing 3 hotels already     
wholly owned by Southern Sun. For the year ended 31 December 2010, which        
benefitted from the 2010 FIFA World Cup, Hotel Formula 1 reported Income of     
R125.7 million and Earnings before interest depreciation amortisation and rental
charges ("Ebitdar") of R66.7 million. The hotels will continue to operate under 
the Hotel Formula 1 brand in terms of an exclusive trademark license agreement  
entered into between the parties.                                               
This acquisition is consistent with the stated growth strategy of the Tsogo Sun 
Group to continue to invest in its core gaming and hotel operations, both       
locally and abroad.                                                             
Johannesburg                                                                    
8 December 2011                                                                 
Sponsor                                                                         
Deutsche Securities (SA) (Proprietary) Limited                                  
Date: 08/12/2011 09:25:17 Supplied by www.sharenet.co.za                     
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