Sun International Ltd. plans to exit Nigeria after the South African casino and hotel operator’s earnings in the country plunged amid a weakening economy and a dispute with the company’s local partners.

Sun International bought 49 percent of the Nigerian Stock Exchange-listed Tourist Company of Nigeria 10 years ago, giving it part-ownership of the Federal Palace hotel in Lagos, one of the main hotels used by businessmen travelling to the commercial capital. Earnings before interest, taxes, depreciation and amortization at the Nigerian operations fell 58 percent in the 12 months through June, Sun said in a statement on Monday. Occupancy rates at the property fell to 42 percent.

“The Federal Palace continues to operate in a difficult environment with the Nigerian economy facing a number of crises including the low oil price,” the Johannesburg-based company said in the statement. The Islamist insurgency led by the Boko Haram group and a weakening naira also hurt trading, while an “ongoing shareholder dispute has frustrated all attempts to develop and improve the property,” the company said.

Other South African companies to have left Nigeria include retailers Woolworths Holdings Ltd. and Truworths International Ltd., citing tough regulation and rising costs. Johannesburg-based MTN Group Ltd., Africa’s biggest mobile-phone provider, agreed to pay a 330 billion naira ($957 billion) regulatory fine in the country earlier this year, leading to its first-ever half-year loss.

Shareholder Dispute
Sun has been drawn into a “long-standing family dispute” between fellow shareholders in Nigeria, the company said earlier this year, after workers, including South African expatriates, were detained without charges by Nigeria’s Economic and Financial Crime Commission. The employees have still not had their passports returned to them, while no charges have been laid against them or the company, Sun said on Monday.

The process of exiting Nigeria is likely to be “protracted,” as Sun seeks to ensure it receives fair value for the investment, the company said. The shares were 0.6 percent lower at 91.59 rand as of 11:46 a.m. in Johannesburg, valuing the company at 10 billion rand ($734 million).

Sun, owner of the Sun City resort northwest of Johannesburg, said full-year diluted adjusted earnings per share excluding one-time items fell 20 percent to 6.28 rand, while sales gained 15 percent to 12.2 billion rand. The final dividend was cut to 1.35 rand a share from 1.75 rand the previous year.

http://www.bloomberg.com/news/articles/2016-08-22/sun-international-to-exit-nigeria-amid-falling-profit-occupancy

Adieu to our economy

LORDOFAFONJAS:
Adieu to our economy

We shall overcome.

1984 reloading

https://www.nairaland.com/3259743/overthrew-buhari-because-too-much

No fuss here! Exit and Nigerian investors take over...

EdCure:

We shall overcome.

no hope bro

EdCure:

We shall overcome.

You shall overcome frm d grave abi

Hmm

Bye bye...when our economy stat booming again by God's grace... u people shud nt come o

LORDOFAFONJAS:

no hope bro

I have hope

LORDOFAFONJAS:

no hope bro

Be an incurable optimist.

diablos:
You shall overcome frm d grave abi

Just when I thought it's only your hope that is dead.
Unlike you, I'm very much alive...and making exploits.

Country wen work no dey, the small work wen people dey manage wan run commot from we country. I hail thee Buhari !

Useless government policies on economy

With the way things are going, the economy might leave Nigeria

I have not seen the laps of a girl For the past 3 months

[s]

Clerverly:
No fuss here! Exit and Nigerian investors take over...

[/s]
zombie

[s]

Slimflame:
Bye bye...when our economy stat booming again by God's grace... u people shud nt come o

[/s]

surly not under a brainless dullard gworo crushing monkey like buhari

Oh! God of Abacha's regime we beseech you oh lord do it like you did it before amin


cc

Clerverly

[s]

EdCure:

Be an incurable optimist.

[/s]
just like you were during GEJ's regime

hypocrite

By the time buhari finish with our country the biggest Expatriate company will be all these mai shayi makers from chad and Niger

Clerverly:
No fuss here! Exit and Nigerian investors take over...

which Nigeria company has the money to take over

Clerverly:
No fuss here! Exit and Nigerian investors take over...

This.
Right on the mark.
This is why I have always said that Nigeria has the wrong type of elites and that our educational system is flawed and antiquated.
No way that a Nigerian cannot build and run casinos.
Guess what,
The money is in the hands of the wrong types who have congregated in the parts of the economy and are extracting rents where they are not needed( oil and gas).

i told these people that oil money sustains Lagos, those oyibos will flee if oil money stops flowing, only rugged local entrepreneurs has what it takes to survive

Lagos might end up like Detroit.