11 Plc (formerly Mobil Oil Nigeria Plc) is to purchase 51percent stake in Capital Hotels Plc (owners of Sheraton Abuja Hotel) at a premium price of N7 per share.
This was agreed at the Emergency Meeting of the Board of Directors of Capital Hotels Plc held on June 14, 2021, according to a statement at the Nigerian Exchange Limited (NGX).
The price at which 11 Plc offers to purchase 51 percent stake in Capital Hotels Plc is reasonably high compared to N2.4 per share it traded on Wednesday June 16.
The Board of Capital Hotels Plc considered the offer by 11 Plc to purchase 51percent stake in Capital Hotels and passed the following resolutions: to among others partner with 11 Plc to offer the right competition in the Abuja hospitality market.
The Board also resolved to sell 51percent stake in Capital Hotels Plc to 11 Plc at the price of N7 per share subject to Hans Gremlin Nigeria Limited (the Core shareholder) being given the opportunity to exit 50percent 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.
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The Board also agreed that in order to balance the interest of Capital Hotels Plc (the Company), Hans Gremlin Nig Ltd (the Core shareholder) and 11 Plc (the Investor), the transaction could be structured with offer for sale and offer for subscription subject to obtaining approval required from the Regulatory Authorities.
In October 2016, NIPCO Investment Company acquired 60percent shareholding of ExxonMobil and in pursuant of a special resolution passed at her Annual General Meeting in May 2017, changed its name from Mobil Oil Nigeria Plc to 11 PLC (pronounced Double One Plc).
The Board further agreed that if the new investor accepts the conditions stated, an Extraordinary General Meeting would be convened to get the approval of the Shareholders for this transaction.
Capital Hotels Plc was incorporated on January 16, 1981 as a private limited liability company. It became a public liability company (Plc) on May 31, 1986. Its hotel, Sheraton Abuja Hotel commenced business in January 1990. Sheraton Abuja Hotel is managed and operated by Marriott International, owners of Starwood Eame License and Services Company, BVBA under a System License Agreement dated June 7, 2011.
