Sun Int’l, manager of Federal Palace Hotel, quits Nigeria | Independent Newspapers Limited
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Sun Int’l, manager of Federal Palace Hotel, quits Nigeria

Sun International
Posted: Aug 22, 2016 at 12:57 pm   /   by   /   comments (0)

South African hotel and gaming group and operators of the Federal Palace Hotel, Lagos, Sun International revealed on Monday it would exit Nigeria due to weak economic growth and clashes with regulators.

The company, which has significant investment in Tourist Company of Nigeria, TCN, was in January, subjected to a probe by the Economic and Financial Crimes Commission (EFCC), with four of its South African staff detained. The EFCC had stated that the investigation was over issues surrounding Sun International initial investment in the Tourist Company of Nigeria (TCN).

“The Board has decided to exit Nigeria and steps will be taken to achieve this in a manner that does not erode further value. Continued setbacks in Nigeria as well as the ongoing shareholder dispute have frustrated all attempts to develop and improve the property,” Sun International said in a statement.

Sun International is the latest South African company to clash with Nigerian authorities after telecommunications group MTN was fined for failing to disconnect users with unregistered SIM cards.

Sun International’s decision to exit Nigeria follows food and clothing retailer Woolworths and Tiger Brands, which sold its loss-making Nigerian division to Dangote Industries.


Source: Vanguard