Capital Hotels Shareholders to Meet Over N11.3bn from New Investor
By Dipo Olowookere
Capital Hotels shareholders will have to gather at a special event fixed for next month in Abuja to decide whether to sell some stocks of the company to an interested investor.
The board wants to allot 1,611,995,510 ordinary shares of 50 kobo to 22 Hospitality Limited through a private placement at a unit price of N7.00. this will amount to N11.3 billion and it will go a long way to boost the capital injection drive of the organisation to boost its operations.
Though this sale still requires the approval of the various regulatory agencies involved in the transaction, including the Securities and Exchange Commission (SEC), shareholders of the firm also have to authorise the deal.
This is why the board has called for an extraordinary general meeting (EGM) on Tuesday, August 3, 2021, at the Sheraton Abuja Hotel, Abuja, which the company operates. The meeting will start at 12 noon, according to a disclosure from the organisation.
In the notice, Capital Hotels said the main agenda for the day includes to “approve the increase of the company’s authorized share capital from N800,000,000 to N1,580,387,755 by the creation of 1,560,775,510 additional ordinary shares of 50 kobo each ranking pari pasu in all respects with the existing ordinary shares of the company.”
In addition, they would be required “to approve the allotment by way of a private placement of 1,611,995,510 ordinary shares of 50 kobo to 22 Hospitality Limited at the price of N7.00 per share, subject to regulatory approval.”
Furthermore, the shareholders would be expected “to authorise the directors and the management to take all actions necessary or incidental to giving effect to the share capital increase and allotment.”
Also, they would be required to “amend the company’s memorandum of association to read as follows, ‘the issued share capital of the company is N1,580,387,755.00 divided into 3,160,775,510 ordinary shares of 50 kobo each.”
Recall that last month, Capital Hotels announced that it was in talks with an energy company, 11 Plc, formerly Mobil Oil Nigeria Plc, for the sale of its 51 per cent stake to the latter.
The major reason for the sale is to enable the company to “offer the right competition in the Abuja hospitality market,” where Transcorp Hilton Abuja, operated by Transcorp Hotels Plc, dominates.