11 Plc (formerly Mobil Oil Nigeria Plc) is in talks with Capital Hotels Plc (Owners of Sheraton), over the purchase of 51% equity stake in the latter, at a premium price of N7 per share, naijabusiness.com.ng can authoritatively confirm.
The move was confirmed by the latter during its recently concluded Emergency Board Meeting held on the 14th of June, 2021.
Naijabusiness.com.ng understands that the recent deal is part of a strategic move by 11 Plc to diversify its revenue sources, by investing massively in real estate, in a bid to spur growth and offset the stagnancy recorded in its fuel margins over the years. Further dig also revealed that 11 Plc had made a similar investment 2 years ago, when it acquired the assets of Lagos Continental Hotel in December 2019.
As regards the recent talks, a notice uploaded at the website of the Nigerian Exchange Group Plc, revealed that the decision to sell the equity stake in the aforementioned firm will be contingent 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, pending regulatory approval.
Furthermore, in a bid to satisfy both parties involved in the deal, the Board of Capital Hotels Plc agreed that the transaction will be structured in two formats, which are- Offer for sale and Offer for subscription.
Sequel to this, 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.
Back story: Recall that naijabusiness.com.ng had earlier reported the delisting of 11 Plc from the Nigerian Exchange Group Limited, after 43 years of trading on the platform. The firm stated that the delisting process will enable it to strategize for better performance, minimize costs and stay competitive within the industry.