South African Hotel and gaming group, Sun International said it had decided to exit Nigeria due to weak economic growth and clashes with regulators.
The group earnings in the country have plunged amid a weakening economy and a dispute involving the company local partners. “The Board has decided to exit Nigeria and steps will be taken to achieve this in a manner that does not erode further value” the company said in a statement.
Bloomberg reports that Sun International bought 49 per cent of the Nigerian Stock Exchange (NSE)-listed Tourist Company of Nigeria (TCN) 10 years ago, giving it part-ownership of Federal Palace Hotel, Victoria Island, Lagos, one of the main hotels used by businessmen traveling to the commercial capital.
Earnings before interest, taxes, depreciation and amortisation (EBITDA) at the Nigerian operations slumped 58 per cent in the 12 months through June, Sun added in the statement. Occupancy rates at the property fell to 42 per cent.