South Africans To Sell Its Equity In Southern Sun Ikoyi Hotels To Kasada Group For $30.4 Million- Nigeria

South Africa’s Southern Sun Africa (SSA) is disposing of its 75.55%. Majority shareholding in Southern Sun Ikoyi Hotels, one of Nigeria’s largest business hotels. Nigerian entities own the balance of 24.45%. The deal value is about $30.4 million- $29.1 million in shares and $1.3 million in shareholder loan claims. The South African owners acquired majority shares of Southern Sun Ikoyi Hotels in 2013 at a value of $65 million.

Who is buying?
Kasada Albatross Holding (the Purchaser), a subsidiary of Kasada Hospitality Fund LP will purchase the hotel. The Kasada Capital Management, is a private equity firm that focuses on investing in the hospitality sector in Sub-Saharan Africa.

Why is Southern Sun Africa Selling?
According to sources of the transaction, Southern Sun Africa faced major financial losses from all its hotel assets. Therefore, the company’s focuses on restructuring its operations due to the impacts of the loss. The Sale Agreement will provide the Purchaser to release the group from its guarantee obligations in respect of the external debt of Ikoyi.

The new hotels name?
Upon conclusion of the deal, Nairametrics understands that the hotel rebranding is a part of the Accor Group of Hotels. The Accor Group is a French-owned multinational hospitality group that manages and franchises hotels, vacation spots, resorts. Some of the hotel brands they own which may be familiar to Nigerians are Novotel, IBIS, Movenpick.

The deal completion is subject to the approval of the Federal Competition and Consumer Protection Commission in Nigeria and the Security & Exchange Commission.

-Nairametrics.