Nigerian Exchange approves listing of 1.6bn Capital Hotels private placement shares
…as 22 Hospitality Limited acquires 51% majority stake
The Nigerian Exchange Limited (NGX) has approved the application for the listing of Capital Hotels plc’s Private Placement of 1,611,995,510 ordinary shares of 50 Kobo each at N7 per share offered to 22 Hospitality Limited.
Meristem Stockbrokers Limited acted as the stockbroker for the transaction while Meristem Capital Limited acted as the issuing house(s)/financial adviser(s).
The transaction involved the issuance and purchase of new shares by 22 Hospitality Limited which resulted in a change in control, with the new investor holding 51percent of the issued and fully paid shares post transaction completion.
The capital raised from the transaction is meant to be utilised for the renovation of the hotel with 22 Hospitality Limited as the new majority investor.
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Capital Hotel’s premier and only hotel, the Sheraton Abuja Hotel, commenced business in January 1990. The hotel operates and maintains restaurants, apartments for letting, recreational facilities, night club and a business centre.
Capital Hotels Plc also engages in hotel business which includes furnishing of hotels and the sale of accommodation; food and beverage in the ordinary course of business.
Its unaudited financial statement for the first-quarter (Q1) ended March 31, 2022 shows turnover of N1.251billion as against N560.798million in same Q1 period of 2021. It reported profit after tax (PAT) of N9.1million in Q1’22 as against loss after tax (LAT) of N149.970million in Q1’21.
The Company was incorporated on January 16, 1981 under the Companies Act, 1968 as a private limited liability company. It was converted to a quoted company in 1986 but was removed from the dealing list by the Stock Exchange in 1990. The Company regained its listing status on Thursday August 14, 2008 and has since remained a quoted public company listed on the floors of the Nigerian Exchange Limited (NGX).