11 Plc reaches agreement with Capital Hotels on 51% stake

By Kayode Tokede

The board Capital Hotels Plc, owner of Sheraton Abuja Hotels has agreed to partner with 11 Plc to offer the right competition in the Abuja hospitality market, and resolved to sell 51per cent stake in Capital Hotels Plc to 11 Plc at the price of N7.00 per share subject to Hans Gremlin Nig Ltd (the Core shareholder) being given the opportunity to exit 50per 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.

This was part of the resolutions passed at the emergency meeting of the board of directors held on 14th June 2021.

According to a notice at the Nigerian Exchange, other resolutions were that 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.

“The Board further agreed that if the new investor accepts the conditions herein stated, an Extraordinary General Meeting would be convened to get the approval of the Shareholders for this transaction,” the notice said. 1 Plc, formerly Mobil Oil Nigeria Plc recently delisted its 360,595,262 ordinary shares from the Nigerian Exchange for it to explore other opportunities without regulatory hindrance.