SABMiller plans to sell its $1 billion share in South Africa’s gaming and hotel group Tsogo Sun, as the brewer looks to focus more cash on its African beer business.

Reuters reported SABMiller, the producer of Peroni and Miller Lite beer, holds a 39.6 percent stake worth an estimated  $1.09 billion in the South African gaming and hotel entity.

“Gaming and hotels are not core to our operations and we have concluded that the time is right for us to exit our investment through a transaction which is beneficial to shareholders of both SABMiller and Tsogo Sun,” SABMiller Chief Executive Alan Clark said in a statement.

SABMiller said it would dispose of up to all of its shareholding through a placing of up to 305 million shares to South African and international institutional investors, and a buyback by Tsogo Sun of at least 130 million shares for about $260 million.

“The market knows these institutional investors will only be prepared to take up these shares at a discount to the current price,” Greg Katzenellenbogen, director at Sanlam Private Investments told Reuters.

De Wet Schutte, an analyst at Avior Research, told Reuters Tsogo Sun that owns Johannesburg’s Montecasino gaming complex and premier hotel brand Southern Sun among other assets, would get an earnings boost from the deal, which will improve liquidity in its shares and possibly spark a valuation re-rating.

“It is a stock that has very good qualities but its relatively small float has placed some restrictions on large investors to invest. We believe this deal would assist the valuation of Tsogo Sun,” said Schutte.