In a busier day for corporate news, Sun International said it would net R275 million in cash from a deal to mostly exit its Nigerian interests. Oceana leapt after its trading update, while the JSE pressed ahead with its plans for a more attractive listing environment. In international news, Norway’s sovereign wealth fund, the world’s largest, is faring rather well.
Sun City owner Sun International said on Thursday it had inked a deal to sell 43.3% of its 49.3% stake in the Tourist Company of Nigeria (TCN), which trades as the Federal Palace Hotel in Lagos, expecting to receive about R275 million in cash from Rutam Finance Company. The remaining 6% equity interest will be sold in due course and shareholders will be kept informed, the group said. Following the close, TCN will longer be consolidated, resulting in group debt reducing by approximately R800 million, then further boosted by the cash proceeds. Sun has previously indicated it wanted to exit the Nigerian market, and it had a total debt of R6.54 billion at the end of December. Valued at just under R10 billion on the JSE, Sun’s shares rose just more than 2% on Thursday. They have fallen about 12.6% in the past year.
Fishing group Oceana informed shareholders they can expect a between 89% and 99% rise in headline earnings per share for its six months to end-March, as it rakes in the benefits of record global fish oil prices. There was also a pleasing Lucky Star result following improved canned food sales volumes delivered in the month of March, it added, though the overall performance was moderated by lower Wild Caught Seafood sales volumes. Oceana also owns as Daybrook in the US, which produces fishmeal and fish oil. It exports hake, lobster, squid and horse mackerel under the Blue Continent brand and generated about R364 million in headline earnings for its 2023 half-year. The group had previously flagged that it was benefitting from better inventory at Daybrook as well as strong global pricing. The cancellation of the main anchovy fishing season in Peru “due to the high presence of juveniles” as a result of the El Niño effect has boosted global prices. Oceana added almost 6% on Thursday and has risen by almost 7% in the past 12 months.
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