The Nigeria Exchange Limited (NGX) has approved the delisting of shares of Capital Hotels Plc to enable the company to explore strategic opportunities.
This was disclosed via a corporate filing statement sent to Nigeria Exchange Limited where the hospitality company revealed the terms given by the exchange to enable the company to proceed with the delisting process.
Capital Hotels revealed that NGX had approved the delisting application provided the company opened an escrow account where shareholders who had agreed to exit would be paid.
In a statement, the company said, “Subsequently, Capital Hotels Plc 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 (“Exit Consideration”) which is more than the highest price at which Capital Hotels Plc 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.”
Recall that Capital Hotels Plc would be delisting all its shares from the main board of the Nigerian Exchange (NGX).
On reasons behind the decision to delist from NGX, Capital Hotels disclosed that delisting from the exchange would “enable the Company to explore strategic opportunities, alliances, and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory obligations.”
According to the audited financial statement of the company for the year ended 31st December 2022, 22 Hospitality Limited is the majority shareholder with 66.13 percent holding.
The company also noted that the delisting won’t have any impact on the existing employment contracts of its staff as well as the composition of the Board of Directors of the company.
Capital Hotels Plc was incorporated in January 1981 as a private limited liability company. It was then converted to a public limited liability company in 1986 and listed on the Nigerian Exchange Limited (then Nigerian Stock Exchange) in 2002.
Capital Hotels Plc is engaged in the hotel business which includes the furnishing of hotels and the sale of accommodation, food, and beverages in the ordinary course of business.
The Company operates the Abuja Continental Hotel (former Sheraton), a Five-Star hotel in the nation’s capital city.