Casino and hotel group Sun International on Thursday announced the sale of most of its stake in the Tourist Company of Nigeria (TCN) as the JSE-listed leisure group winds down its investment in the West African country.
Rutam Finance will pay $1.875m for Sun International’s 43.3% shareholding in TCN, which trades as Federal Palace Hotel in the commercial capital, Lagos, and a further $12.675m for all of a loan account held with TCN, according to a statement published on Sens.
The deal, which is subject to several conditions precedent, will see Sun International receiving R275m from Rutam by no later than May 28. The proceeds of the sale will be used to settle some of Sun International’s group debt.
Sun International said its remaining 6% stake in TCN would be sold in due course.
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