September 2, 2019

Sun International edges closer to sale of Federal Palace Hotel in Lagos

Dolapo Omidire

Three years after they announced plans to sell their stake in Federal Palace, Sun International has confirmed that they will be appointing advisors to commence a formal disposal process shortly. This recent development follows a series of unsolicited offers from third parties who have expressed interest in the asset.

Sun International’s interest in Federal Palace comes through a 49% stake in the Tourist Company of Nigeria, which wholly owns the hotel and casino. It was acquired from Ikeja Hotel PLC in 2009 and 2010 but has suffered from a poor performance in recent years.

According to Sun International’s most recent financials, a Deloitte led forensic audit initiated by the Securities and Exchange Commission  (SEC) on Sun International’s acquisition of TCN shares that commenced in 2018 is now complete. Sun International is now awaiting a resolution from the SEC.

For the period ending June 2019, the Tourist Company of Nigeria made a loss of ₦931m, 41% higher than the ₦662m loss in the same period last year.

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