11 Plc (formerly Mobil Oil Nigeria Plc) is in talks with Capital Hotels Plc over the purchase of 51% equity stake in the latter, at a premium price of N7 per share.
The deal was agreed at the recently concluded Emergency Meeting of the Board of Directors of Capital Hotels Plc held on the 14th of June, 2021.
According to a notice uploaded on the website of the Nigerian Exchange Group Plc, the decision to sell the stake in the aforementioned firm, partly depends on whether its core shareholder (Hans Gremlin Nigeria Limited), is ready to exit 50% of its stake at the same price, and on such other terms and conditions that the Directors deem fit, subject to obtaining regulatory approval.
Additionally, the Board of Capital Hotels Plc also agreed that in order to balance the interests of the parties involved, the transaction will be structured in two ways- Offer for sale and Offer for subscription. In this light, the board agreed that if the new investor accepts the pre-specified conditions, an extraordinary General meeting would be convened to get the approval of the shareholders for this transaction.
It is pertinent to note that the deal is in line with 11 Plc’s diversification plans. The firm had earlier reiterated its plans of investing in the real estate as an alternative source of revenue, with a significant potential of stimulating growth and offsetting the austere fuel margins.
In likewise manner, Nairametrics had earlier reported the acquisition of Lagos Continental Hotel by 11 Plc.
For more information about the recent disclosure, click HERE.