Finweek English Edition - - INVESTMENT -

Speak­ing of Tsogo Sun, the ho­tel group re­ally has stuck it to share­hold­ers (and staff) with its R200m in­ter­est-free loan to five di­rec­tors to fund their pur­chase of the Tsogo shares that SABMiller is sell­ing. Yes, Tsogo Sun is a hugely cash-gen­er­a­tive busi­ness and had some R1.7bn in cash for the year end­ing March, so it can af­ford it. But that’s not the is­sue. How does an in­ter­est-free loan to selected di­rec­tors ben­e­fit share­hold­ers? Granted, the f ive di­rec­tors have for­feited their rights to the phan­tom share scheme and that would have been a

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