Owners Of Federal Palace Hotel Are Shutting Down Operations In Nigeria
Federal Palace hotel is
a popular 5-Star Hotel in Lagos and has been around since Imo River. But it appears business hasn’t been that well and the
owners, South Africa’s Sun International say they are almost done.
Reuters reports that the company expects an investigation into a shareholder dispute at its Nigerian operation to be completed shortly, paving the way for the casino and hotel operator to finally leave Nigeria, it said on Monday.
Sun International, which reported a 46 percent decline in half-year earnings hurt by subdued growth and one-off costs, bought a 49% stake in the Tourist Company of Nigeria (TCN) in 2006, becoming the largest single shareholder.
However, that deal has been disputed by some of the Ibru family, a fellow shareholder in TNC, which prompted various parties including Sun International and Nigeria’s Securities Exchange Commission (SEC) to appoint consultants Deloitte to investigate.
“Deloitte is expected to complete its investigation of the shareholder dispute shortly. Once the Deloitte investigation has been completed, it will pave the way for Sun International to exit its investment in Nigeria,” Sun International said.
The company also said the board of the TCN, had been reconstituted, with Nigeria’s SEC appointing two directors.
“The property is sought after given its location so there are potential buyers, but Nigeria has been volatile for a while. It starts becoming difficult for investors to have confidence,” said Sun International Chief Executive Officer Anthony Leeming.
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