Rutam Finance Company Limited agreed to acquire a 43.3% stake in The Tourist Company of Nigeria Plc (NGSE:TOURIST) from Sun International Limited (JSE:SUI) on March 18, 2024. Rutam Finance Company concluded a sale and purchase of shares agreement to acquire a 43.3% stake in The Tourist Company of Nigeria from Sun International for $14.5 million on April 18, 2024. The selling price of Sun International?s 43.3% equity interest in TCN to RFC is $1.875 million while Sun International dispose of 100% of its loan account held in TCN to RFC for a selling price of $12.675 million.

The remaining 6% equity interest held by Sun International in TCN will be sold by Sun International in due course and shareholders will be advised thereof at the appropriate time. The remaining major shareholders of TCN have, as per the shareholders agreement in place between the parties, agreed to waive their pre-emptive rights to subscribe for those shares which Sun International intends selling to RFC and have consented to the Proposed Transaction. Sun International will use the proceeds against debt.

The transaction is subject to securing Competition Authority, Securities Exchange Commission and Nigerian Stock Exchange approvals in Nigeria; RFC executing an accession agreement to the shareholders agreement between TCN and its various shareholders; and Oma Investments Limited and Omamo Investments Corporation, sister companies of RFC, and Sun International entering into a settlement agreement regarding the various disputes, actions and applications instituted against each other in previous years. The closing date of the Proposed Transaction will be the third business day immediately following the date upon which the last of the conditions precedent set out in the sale and purchase of shares agreement have been fulfilled or waived (to the extent that they are capable of being waived) by the parties which is anticipated to be not later than May 28, 2024.