Business News

Sun International to sell off shares in Federal Palace Hotel and Casino 

South African hospitality group, Sun International Limited has announced plans to sell off 43% of its shares in Tourist Company of Nigeria Plc, the owners and operators of Federal Palace Hotel and Casino.  

According to a notice accessed by Naijaonpoint, Sun International Limited which owns a 49% shareholding in Federal Palace Hotel and Casino, is divesting 43% of its shares to Rutam Finance Company. Rutam Finance Company is an associate of Oma Investments Limited, another existing shareholder in Tourist Company of Nigeria Plc (TCN).  

In the notice signed by Lovelyn Aniekwe, TCN’s Company Secretary, it was noted that the hotel’s board held a meeting on April 3, 2024, in response to a notice from Sun International Limited regarding an offer, duly acknowledging the proposal.  

The notice read, “The Board convened an emergency meeting on April 3, 2024, to consider the notice from Sun International Limited and noted the offer. 

Recall that in 2018, Oma Investments Limited, the investment vehicle owned by the late Publisher, Alex Ibru acquired a 25.89% shareholding in Ikeja Hotels Plc. This has since increased to 26.19%.  

In FY 2023, Federal Palace Hotel continued its run of losses with a loss after tax of N31.67 billion, representing an 89.6% decline from its 2022’s net loss of N3.21 billion. The group’s loss was majorly driven by a net FX loss of N30.26 billion.  

Federal Palace Hotel closed 2023 with a negative equity of N7.78 billion, reflective of the dire financial challenges the hotel is currently facing.