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Sun International Leaves Nigeria Over ‘Hostile Environment’ - Business - Nairaland

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Sun International Leaves Nigeria Over ‘Hostile Environment’ by ijustdey: 8:28pm On Aug 22, 2016
Sun International, with 49 percent stake in Federal Palace Hotel, says it is leaving Nigeria, owing to “challenging economic conditions and regulatory dispute”.

The hospitality and gaming company, which becomes the fourth major South African company to exit Nigeria in 2016, said the controversial detention of five of its staff by the Economic and Financial Crimes Commission (EFCC) spurred its decision to exit Nigeria.

“Continued setbacks in Nigeria as well as the ongoing shareholder dispute have frustrated all attempts to develop and improve the property,” the hotel said in its 12-month financial statement.

“Five of our staff members who were detained by the Economic and Financial Crimes Commission earlier in the year have still not had their passports returned to them despite no charges being laid against the individuals, the company or Sun International.

“As a result of the current environment and issues facing the company the board has taken the decision to exit our investment in Nigeria.”

It said the exit “is however expected to be a protracted process given the challenges we are facing and to ensure we receive fair value for our investment”.

EBOLA AND FOREX LOSSES
The company said it also recorded “an unrealised foreign exchange loss of $15.2 million or R207 million (R102 million attributed to Sun International) incurred on the group’s Nigerian subsidiary’s US dollar denominated shareholder loans”.

“The Federal Palace continues to operate in a difficult environment with the Nigerian economy facing a number of crises including the low oil price, Boko Haram and a weakening naira and it has still not recovered from the significant impact that the Ebola epidemic had on the business.

“Occupancy at 41.6% was 6.8% below last year with the average room rate up 3.8%. Despite all efforts to keep costs as low as possible EBITDA declined 58%.

“In addition to the problems that the country faces, there are a number of issues specific to the local Nigerian partners in the Federal Palace and these have further exacerbated the problem.

“After much consideration the Board has determined to exit Nigeria and steps will be taken to achieve this in a manner that does not erode further value.”

Truworths announced its exit from Nigeria back in February, due to the same issues, while Clover left about two weeks later.

Tiger Brands also sold off its stake in Nigeria-based Dangote Flour, following challenging economic environment in the second largest economy in Africa.


https://www.thecable.ng/another-sa-company-exits-nigeria-hostile-environment

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Ollywhel(m): 8:45pm On Aug 22, 2016
Clearly the Nigerian economy is not encouraging foreign investors. Or even local investors. I have never seen Nigeria this bad.

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by casttlebarbz(m): 8:56pm On Aug 22, 2016
Second to comment. ..I Wil get dia
BTW we can only hope 4 d best, leave or stay Nigeria will surely get over ds # economy

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by davide470(m): 9:04pm On Aug 22, 2016
Well, Tiger Brands left Dangote Flour after years of recording losses. Within a year of their exit, Dangote brought back Dangflour to a profitability status.

Sun is leaving Federal Palace Hotel citing unrealised loss of foreign exchange bla bla.. Though it is not a public quoted firm, I can bet you after their exit, Federal Palace Hotel would bounce back.

So you see why foreign investors are skeptical?

Na by ourself we dey kill ourself!..

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by knightsTempler: 10:09pm On Aug 22, 2016
Any good news yet?

In less than 18 months, this administration has steadily declined on a downward spiral that the HAILERS have to change the "H" in their name to "W".

Everyone is now a WAILER.

Although those who only just decamped are second-class wailers with PHOTOCOPY credentials.

Thankfully, the ORIGINAL wailers with first-class credentials have finally been vindicated.

Sai chanji!

Meanwhile, the type of headlines you read in the news are:

*A man arrested for naming his dog Buhari
*Man steals pot of soup on fire
*A Southeast governor hospitalized after being slapped by a ghost carrying a child
*Nigerian Dream Team stranded at the airport
*Arrested Fulani Herdsmen escape from prison
*Woman gives birth while queuing at the filling station
*Trucks of foodstuffs meant for IDPs camp hijacked
*A woman exchanges her daughter for 10 cups of garri
*Nigeria replaced by South Africa as the no 1 fastest growing economy in Africa
*Outbreak of Polio hits Nigeria
*Etcetera etcetera

Such is the #change 15 million Nigerians asked for. Unfortunately though, every Nigerian living in Nigeria is bearing the brunt.

So I ask, any good news yet?

-Laura Pius.

159 Likes 11 Shares

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Jediel1(m): 10:11pm On Aug 22, 2016
Kai my brain eh grin , i been wan run say sun don leave naija grin, BTW bye bye my igbo frnds will c dis as opportunity wink

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Emekamex(m): 10:12pm On Aug 22, 2016
Nigeria is now worse than hellfire, all thanks to the ¨genius¨ incharge.

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Charles4075(m): 10:12pm On Aug 22, 2016
Waiting for the ''You see what Buhari caused'' crew..

Dem gonna flood this thread now.

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Nobody: 10:12pm On Aug 22, 2016
May someone's worst performance not be better than your best. There was a country.

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by MrPresident1: 10:13pm On Aug 22, 2016
Byebye sad

From the 3rd fastest growing economy in the world, backed with empirical evidence, to somalia-like economic conditions in less than 2years?

Haba!!!

Where are the people who told us Buhari is our lord and saviour? angry angry angry

37 Likes

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by DICKtator: 10:13pm On Aug 22, 2016
Who is buying over the stake?

you know casino and hotel business is good business

ask Bugsy Sigel

grin grin grin grin

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by braine(m): 10:13pm On Aug 22, 2016
Good. Let them go. Corrupt thieves. I don't see the value they add to ordinary Nigerians anyway. They should pave way for our indigenous hospitality.

We don't need people who fidget when things are bad when everyone knows that everyday is not Christmas.

Nigeria will bounce back, and when she does, it would be nice to be rest assured that the weaklings have already left.

7 Likes 2 Shares

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Rapmoney(m): 10:13pm On Aug 22, 2016
Photo of my goat I named 'Aisha' today!!! 22nd August, 2016! A day to remember!!! I love this goat cool

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by xreal: 10:13pm On Aug 22, 2016
I think that is an achievement to Nigerian Labour market. Someone just lost his/her job due to government's negligence.

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by rukkyland(m): 10:13pm On Aug 22, 2016
farewell.. and plz hasten up.

1 Like 1 Share

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by felzylix(m): 10:13pm On Aug 22, 2016
who dem help??

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by mikkybellami(m): 10:13pm On Aug 22, 2016
And that's the only five star hotel in Nigeria

1 Like

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by brostheo(m): 10:14pm On Aug 22, 2016
Let them go! baba buhari will fill everywhere with cattles. BTW,what's that greedy mtn waiting for?

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Beewhy01(m): 10:14pm On Aug 22, 2016
Another potential job loss is looming

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Lighthouseman: 10:15pm On Aug 22, 2016
An economy in recession instead of fixing it the president wants a law for more powers to be divulged to him while most reasonable Nigerians are asking that power be decentralised.
A repeat of 1984 essential commodities is looming when soldiers would be sent to the markets to enforce prices of goods. Let's say you buy rice at 20k, the army would force u to sell at 11k. This his policy sent companies like leventis underground to this day and many others had to pull out of Nigeria.
He should seek for help... This stubborn man will never.... He is too proud to be a president. A president who has never visited the economic capital of Nigeria in two years doesn't care about the economy.
Who has seen bubu in Lagos? And he has no intentions of going there.... He is holed up in Abuja by the cabal telling him he would be assassinated if he leaves Abuja. But has been to kadunA and katsina, zamfara and you think this man cares about the economy?
A flourishing economy has now turned to an eyesore in less than 2 years.... The worst is folks can't feed!

25 Likes 2 Shares

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by ChappyChase(m): 10:15pm On Aug 22, 2016
What should I say? Congratulation or Condolence to Nigeria??

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by gungab(m): 10:15pm On Aug 22, 2016
May God help us

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by saracus(f): 10:15pm On Aug 22, 2016
Which way Naija? Smh

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by danypst: 10:16pm On Aug 22, 2016
chei! Sai Buhari! APC!! CHANGE!! Awon oloshi.

11 Likes 1 Share

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Nobody: 10:17pm On Aug 22, 2016
another prayer answered, according to fr. mbaka grin

8 Likes 3 Shares

Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by emmyid(m): 10:17pm On Aug 22, 2016
K
Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by doctorkush(m): 10:17pm On Aug 22, 2016
go... embarassed meanwhile

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by c4tnoelz(f): 10:18pm On Aug 22, 2016
Chanji dole affected them in a negative way they were left with no options than to leave.
Pmb iz dz d change u promised Nigerians?

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by martineinstein(m): 10:18pm On Aug 22, 2016
south african? bye-bye...dstv is next

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by Mopolchi: 10:20pm On Aug 22, 2016
Na waooh!

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by misscall247: 10:20pm On Aug 22, 2016
APC Una fada

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Re: Sun International Leaves Nigeria Over ‘Hostile Environment’ by braine(m): 10:20pm On Aug 22, 2016
brostheo:
Let them go! baba buhari will fill everywhere with cattles. BTW,what's that greedy mtn waiting for?

MTN are a smart organization. Plus they make far more profit than to just up and go like that.

1 Like 2 Shares

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