The Nigeria Exchange Limited (NGX) has granted approval for the voluntary delisting of Capital Hotels Plc (NGX: CAPHOTEL), marking a pivotal moment in the company’s strategic journey. Capital Hotels Plc, the parent company of Abuja Continental Hotel, disclosed this crucial decision through a corporate filing statement submitted to NGX.
Under the delisting terms, NGX mandated Capital Hotels Plc to establish an escrow account, facilitating the compensation of shareholders who opted to exit the company. The exit consideration was set at N5 per share, exceeding the highest trading price of Capital Hotels Plc’s stock in the six months leading up to the Annual General Meeting (AGM) where the delisting resolution was approved, in accordance with NGX guidelines.
Approval and Ownership Transition
Following meticulous negotiations and compliance with regulatory requirements, Capital Hotels Plc has successfully opened an escrow account in partnership with CardinalStone Registrars Limited. Furthermore, the company has allocated sufficient funds to compensate shareholders who had agreed to the exit consideration, as of the cutoff date, August 17, 2023.
The total amount allocated for this purpose stands at approximately N1.64 billion, a significant step towards securing the delisting process. This voluntary delisting approval from NGX signifies a major transition for Capital Hotels Plc.
The ownership structure of Capital Hotels Plc has undergone a transformation, with NIPCO Plc, a key player in Nigeria’s oil and gas industry, acquiring an 87 percent stake, equivalent to 2.71 billion shares of the hotel. This acquisition was made through NIPCO Plc’s subsidiary, 22 Hospitality Limited.
Capital Hotels Plc’s decision to voluntarily delist from NGX is driven by a strategic imperative to enhance performance, reduce costs, and maintain competitiveness within the industry. The company expressed its commitment to ensuring that the exit consideration is promptly settled through electronic transfers to shareholders’ respective bank accounts.
As of the latest available data, Capital Hotels Plc boasts an issued share capital of 3,160,775,510 shares, with 22 Hospitality Limited now holding 85.74 percent of the issued shares.
This voluntary delisting represents a crucial chapter in Capital Hotels Plc’s journey, allowing the company to explore strategic opportunities and chart a course for future growth and success in the ever-evolving hospitality industry.
Photo Source: Google
27th Spetember , 2023
Delino Gayweh
Serrari Financial Analyst
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