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Capital Hotel Sets Aside N1.6bn To Pay Off Minority Shareholders Ahead Of Exit From Stock Exchange

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The company has also received approval from the NGX to exit the local bourse, it said in a filing.

Capital Hotel is the parent company of Abuja Continental Hotel, formerly Sheraton Hotel.

NIPCO Plc, a downstream operator in Nigeria’s oil and gas industry acquired 87 per cent or 2.71 billion share of the hotel through its subsidiary, 22 Hospitality Limited which makes it the the new owner, according to its books seen

“Further to the application made to The Exchange by Capital Hotels Plc on the voluntary delisting of the company from the Exchange as recommended by the Board of Directors.

“The Exchange approved the delisting application subject to Capital Hotels Plc’s evidence of opening an escrow account in the Registrar’s name and evidence that shareholders who have accepted to exit have been paid,” Capital Hotel said.

The hotel said it has opened an escrow account with CardinalStone Registrars Limited and provided sufficient funds to shareholders, who as of August 17, 2023 have accepted the exit consideration of N5 per share.

Capital Hotel said the N5 per share offer is more than the highest price at which its stock traded in the last 6 months preceding the date of the Annual General Meeting (AGM) where the resolution to delist was passed in line with NGX guidelines.

The Hotel said it took the step to delist from the exchange in order to provide the company with the opportunity to strategize for better performance, minimize costs and stay competitive within its industry.

“The consideration accruing to shareholders of Capital Hotels Plc that elect to accept the exit consideration has been computed as of August 17, 2023. The cash consideration will be settled by way of electronic transfer to the respective bank accounts of shareholders,” Capital Hotel said.

The company has 3,160,775,510 issues share capital out of which 22 Hospitality acquired 2,710,077,970 shares or 85.74 per cent of the issued shares.

Continental Energy Resources Ltd holds 228,564,655 shares or 7.23 per cent, Abuja Investment Company Ltd holds 100,775,620 shares (3.19 per cent).

The company has a free float shares of 121,357,265 which is 4 per cent of the issued share capital.

Continental Energy and Abuja Investment Company hold combined 329,340,275 shares valued at N1.65bn based on the N5 exit consideration, analysis showed

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