11 Plc set to acquire 51% equity stake in Capital Hotels Plc.

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.

NSE approves delisting of 11 Plc shares.

Following an application to the Nigerian Stock Exchange (NSE) on the voluntary delisting of 11 Plc (formerly known as Mobil Oil Nigeria Plc), the NSE has approved the delisting application.

According to the NSE, the application was ratified subject to 11 Plc’s evidence of opening an escrow account in the registrar’s name and evidence that the shareholders who have accepted to exit have been paid.

The company had opened an escrow account with GTL Registrars and Data Solutions Limited and provided sufficient funds to shareholders, who as of March 15, 2021, have accepted the ‘Exit Consideration’ of N213.90 per share. The Exit Consideration is based on the highest price of N213.90 at which 11 Plc traded in the last 6 months preceding the date of the Annual General Meeting, where the decision to delist was passed in line with NSE guidelines.

The oil firm noted that the delisting process will enable it to strategize for better performance, minimize costs and stay competitive within the industry.

What you should know:

  • 11 Plc is a Nigerian-based petroleum products marketer which got listed on the Nigerian Stock Exchange in 1978. This implies that the firm has spent about 43 years on the Exchange.
  • The firm had earlier explained that the decision to voluntarily delist was recommended by the Board of Directors and supported by at least 75% of members present during the AGM.
  • By implication, over 360.6 million units of the firm’s shares will be delisted from the daily official list of the NSE.

For more information about the disclosure, click HERE.