The Board of Directors of Capital Hotel Plc, owners of Sheraton Abuja Hotel, has resolved to sell 51 per cent stake in the company to 11 Plc, formerly Mobil Oil Nigeria Plc.
In a notification to the Nigerian Exchange (NGX) Limited yesterday, the board of Capital Hotel Plc said the decision sell the 51per cent stake to 11 Plc was reached at the emergency meeting of its board held on June 14, 2021.
The board agreed to partner with 11 Plc to offer the right competition in the Abuja hospitality market and resolved to sell 51 percent stake in Capital Hotels Plc to 11 Plc at the price of N7.00 per share subject to Hans Gremlin Nigeria Limited (the Core shareholder) being given the opportunity to exit 50 per cent of its stake in Capital Hotels Plc at the same price, and on such other terms and conditions as the Directors may deem fit subject to obtaining the approval of the regulatory authorities.
The board also agreed that in order to balance the interest of Capital Hotels Plc, Hans Gremlin Nigeria Limited and 11 Plc, the transaction could be structured with an offer for sale and offer for subscription subject to obtaining approval required from the regulatory authorities.
The board further agreed that if the new investor accepts the conditions, an extraordinary general meeting would be convened to get the approval of the shareholders for this transaction.
Considering the closing price of N2.40 per share of Capital Hotel Plc yesterday, the N7.00 offer price is at a premium of about 191 per cent. And some market analysts said it would be good for the company if the investor agrees to take the offer at the price.
Market analysts said the move is in line with 11 Plc’s expansion drive into the hospitality industry which began in 2019 by acquiring Lagos Continental Hotel.
Managing Director/CEO of 11 Plc, Adetunji Oyebanji, had then said the company planned to partner with a major international brand to provide world-class hospitality services.
“11 Plc currently owns several prime properties in its real estate portfolio fully rented to blue-chip tenants and the acquisition of this asset is consistent with our desire to diversify our interests given the current challenging environment in the downstream sector of the petroleum industry,” Oyebanji said.
