Sun International is moving ever closer to pulling its operations from Nigeria as an investigation into a regional shareholder dispute appears to be coming to an end.
The dispute over operations in Nigeria has roots in 2006 when Sun purchased a 49 percent stake in the Tourist Company of Nigeria (TCN), an acquisition that has since been disputed by fellow shareholders, the Ibru Family.
Deloitte was subsequently appointed to investigate the issue, the culmination of which is expected in the near future. “Deloitte is expected to complete its investigation of the shareholder dispute shortly. Once the Deloitte investigation has been completed, it will pave the way for Sun International to exit its investment in Nigeria,” Sun International said in a statement.
It was first announced by the company that it would seek to leave the market following the ending of the investigation as it, along with many other multinational firms, have found the business climate increasingly untenable.
“Nigeria has been volatile for a while. It starts becoming difficult for investors to have confi- dence,” said Sun International CEO Anthony Leeming.
It was announced by the company in March of this year that it would be undergoing a period of asset consolidation meaning the closure of a number of loss-making venues, primarily located outside of its regional base in South Africa.
“We have some positive performances such as Times Square (a casino venue in Pretoria) with some other not performing well, It is going to a be a mixed bag but overall very sluggish growth for the rest of the year,” Leeming added.