22 Hospitality Ltd to delist Capital Hotel, pay shareholders N5 per share
Capital Hotel Plc has disclosed that minority shareholders of the company will be paid N5 per share to finalise the firm’s delisting from the stock market.
In a statement released on Tuesday, Capital Hotel said it will delist the 3.16 billion ordinary shares listed on the Main Board of The Nigerian Exchange Limited
The buyout offer was made to shareholders who disapproved that Capital Hotel should delist, “The interest of dissenting shareholders shall be bought by the Majority Shareholder for a consideration of ₦5 (Five Naira) per each ordinary share, being the highest price at which the company shares have traded, six (6) months preceding the notice of the AGM at which the resolution to delist will be deliberated, as provided by the rules of the Nigerian Exchange Limited (“NGX”),” the statement reads.
Capital Hotel further stated that: ‘The Financial Advisers and the Board, therefore consider this price fair and reasonable. Following the conclusion of the delisting process, the company will become an Unlisted Public Liability Company (PLC)
However, shareholders that intend to remain members of the company after delisting shall be free to remain and would have no obligation to receive the Exit Consideration
The majority shareholder of the firm, 22 Hospitality Limited, intends to buy out the minority shareholders of the firm to enable the investor to have total control over the affairs of Capital Hotel by taking the hospitality business private.
Commenting on the reasons 22 Hospitality Limited is taking Capital Hotel off the public market, the company said: “The purpose of delisting is to enable the Company explore strategic opportunities, alliances and collaborations that can bolster earnings and/or provide synergized benefits with little or no regulatory obligations
