SA investors to sell equity in Southern Sun Ikoyi Hotels to Kasada Group

South Africa’s Southern Sun Africa (SSA) is selling its 75.55% majority shareholding in Southern Sun Ikoyi Hotels, in a deal valued at about $30.4 million.

The sum comprises $29.1 million in shares and another $1.3 million in shareholder loan claims, the group said.

Southern Sun is one of Nigeria’s largest business hotels, with the Nigerian entities own the balance of 24.45%.

The South African owners acquired majority shares of Southern Sun Ikoyi Hotels in 2013 in a deal that valued the hotel at about $65 million at the time.

However, the hotel is now being acquired by Kasada Albatross Holding (the Purchaser), which is a subsidiary of Kasada Hospitality Fund LP.

The Kasada Capital Management, which also includes the hospitality business, is a private equity firm that focuses on investing in the hospitality sector in Sub-Saharan Africa.

The investment firm was launched in 2018 with the backing of the Qatar Investment Authority, the sovereign wealth fund of the State of Qatar, and Accor, a world-leading augmented hospitality group.

The Kasada Group’s hotels are operated under the banner of Accor’s wide range of internationally renowned brands.

The successful implementation of the disposal would result in the reduction of the group’s US dollar-denominated debt (Offshore Debt) through the deconsolidation of Ikoyi’s external debt of US$12.8 million and provides SSA with sufficient cash resources to offset Offshore Debt in Mozambique amounting to US$26.6 million, thereby eliminating the forex risk to the group.

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