22 Hospitality Limited buys Sheraton’s parent company, Capital Hotels
Capital Hotels Plc, owners of the Abuja-based luxury hotel, Sheraton, said 22 Hospitality Limited has procured 66.1 per cent of its outstanding shares in exchange for a controlling stake in the company.
A purchase of a company’s total issued shares crossing the 50 per cent threshold is deemed a buyout. Capital Hotels has not posted annual profit in the last two years.
The transaction is the end of a series of off-market deals conducted for months, and means Hans Gremlin Nigeria Limited will be yielding to 22 Hospitality Limited the ownership crown it had worn for two decades.
“All the required regulatory approvals have been received for the transaction,” Capital Hotels said in a statement posted on the Nigerian Exchange’s website.
Capital Hotels set out earlier in the year to raise capital for, what it said, was the renovation of the hotel.
The board sought to approach it by way of rights issue and made a proposal during an emergency general meeting in April to sell new shares to existing shareholders at N7 per share at a time a unit was selling for N3.19 in the market.
A refusal by shareholders to endorse the offer for fear it would erode their rights meant the board turned to private placement as a second option. In all, 1,611,995,510 shares were allotted to 22 Hospitality Hospital at N7 per unit when that was concluded, totalling N11.3 billion.
READ ALSO: TRAVELS: How Sheraton Abuja Is Losing Its Appeal
The company’s share price, which had been stuck at N3.19 for at least seven months to 23rd May, jumped to N3.40 that date but has not moved again ever since.
The share purchase transferred 51 per cent of the company’s outstanding shares to 22 Hospitality Limited.
“In addition, 22 Hospitality Limited also bought 456,641,337, and 21,562,293 Ordinary Shares of 50 kobo each representing 14.45% and 0.68% of the equity share capital of the Company, from Hans Gremlin Nigeria Limited and Associated Ventures International Limited respectively through Offer for Sale,” according to the statement.
Altogether, the new owner’s holding in the firm translates to 2,090,199,140 ordinary shares.
Bank of Industry Limited, Ministry of Finance Incorporated, Nigeria Re-insurance Corporation and Continental Energy Resources Limited are among the substantial shareholders of Capital Hotels, its 2021 audited financial statement shows.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
Capital Hotels Plc, owners of the Abuja-based luxury hotel, Sheraton, said 22 Hospitality Limited has procured 66.1 per cent of its outstanding shares in exchange for a controlling stake in the company.
A purchase of a company’s total issued shares crossing the 50 per cent threshold is deemed a buyout. Capital Hotels has not posted annual profit in the last two years.
The transaction is the end of a series of off-market deals conducted for months, and means Hans Gremlin Nigeria Limited will be yielding to 22 Hospitality Limited the ownership crown it had worn for two decades.
“All the required regulatory approvals have been received for the transaction,” Capital Hotels said in a statement posted on the Nigerian Exchange’s website.
Capital Hotels set out earlier in the year to raise capital for, what it said, was the renovation of the hotel.
The board sought to approach it by way of rights issue and made a proposal during an emergency general meeting in April to sell new shares to existing shareholders at N7 per share at a time a unit was selling for N3.19 in the market.
A refusal by shareholders to endorse the offer for fear it would erode their rights meant the board turned to private placement as a second option. In all, 1,611,995,510 shares were allotted to 22 Hospitality Hospital at N7 per unit when that was concluded, totalling N11.3 billion.
READ ALSO: TRAVELS: How Sheraton Abuja Is Losing Its Appeal
The company’s share price, which had been stuck at N3.19 for at least seven months to 23rd May, jumped to N3.40 that date but has not moved again ever since.
The share purchase transferred 51 per cent of the company’s outstanding shares to 22 Hospitality Limited.
“In addition, 22 Hospitality Limited also bought 456,641,337, and 21,562,293 Ordinary Shares of 50 kobo each representing 14.45% and 0.68% of the equity share capital of the Company, from Hans Gremlin Nigeria Limited and Associated Ventures International Limited respectively through Offer for Sale,” according to the statement.
Altogether, the new owner’s holding in the firm translates to 2,090,199,140 ordinary shares.
Bank of Industry Limited, Ministry of Finance Incorporated, Nigeria Re-insurance Corporation and Continental Energy Resources Limited are among the substantial shareholders of Capital Hotels, its 2021 audited financial statement shows.
Support PREMIUM TIMES’ journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
Donate
TEXT AD: Call Willie – +2348098788999
Denial of responsibility! Techno Blender is an automatic aggregator of the all world’s media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, all materials to their authors. If you are the owner of the content and do not want us to publish your materials, please contact us by email – [email protected]. The content will be deleted within 24 hours.