11 Plc, formerly Mobil Oil Nigeria Plc, is in talks with Capital Hotels Plc, owners of Sheraton Abuja hotel, to acquire a 51 percent equity stake.
Capital Hotels disclosed this in a statement released on the Nigerian stock exchange group limited on Thursday.
In 2019, 11 Plc had acquired the Lagos Continental Hotel after discussion on the property with the Asset Management Company of Nigeria (AMCON).
Capital Hotels said that the board of directors have agreed to offer the stake to 11 Plc at the price of N7.00 per share subject to Hans Gremlin Nig. Ltd (the Core shareholder) being allowed to exit 50% of its stake in Capital Hotels at the same price.
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“The Board agreed to partner with 11 Plc to offer the right competition in the Abuja hospitality market, and resolved to sell 51% 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 50% 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,” the statement reads.
“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.”
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The transaction is subject to approval by regulatory authorities.
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