Ikeja Hotel Plc to raise additional capital by way of rights issue

The shareholders of Ikeja Hotel Plc (NGX: IKEJAHOTEL) has approved the raising of additional capital by way of rights issue.

At its Annual General Meeting held on 26th July, 2023, the shareholders approved that the additional capital be raised by the issuance of 1,133,888,945 units of unissued shares of the company as a rights issue.

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A rights issue is an invitation to existing shareholders to purchase additional new shares in the company. This type of issue gives existing shareholders securities called rights. With the rights, the shareholder can purchase new shares at a discount to the market price on a stated future date.

The rights issue will be at the rate to be determined by the board of directors, and will be offered to shareholders based on 6 (six) new ordinary shares for every 11 (eleven) ordinary shares held in the company to members on the register of members as at December 13, 2022, based on the 2022 audited accounts of the company.

In its audited accounts for the 2022 full year ended 31 December, 2022, the company stated that the rights issue will be at the rate of N1.00 per share on the basis of 6 new ordinary shares for every 11 units of shares held.

Ikeja Hotel Plc., formerly Properties Development Limited, was incorporated on 18 November, 1972. It owns the Sheraton Lagos Hotel, and is a core investor in Hans Gremlin Nigeria Limited. It also has significant shareholding in the Tourist Company of Nigeria Plc (Owners of Federal Palace Hotel & Casino, Lagos).

The Hotel was managed and operated by Starwood Eame License and Services Company BVBA up to June 2017 under an agreement dated 31 October 1980 and renewed 1 April 2008. Subsequently Marriot International took over the management of the Sheraton brand from June 2017 due to acquisition of Starwood Eame License and Services Company BVBA.

The other resolutions proposed and duly passed by shareholders at the Annual General Meeting of July 2023 includes;

Ordinary Business:

That the Company hereby approves that the dividend be declared at 7.5 Kobo Per Ordinary Share of The Company, amounting to a total sum Of N155,909,730.00, to be paid to the shareholders of the Company.
That Ms. Ngozi Edozien and Mrs. Olukemi Adeoye hereby be appointed as directors of the Company.
That the firms Of Messrs. Ugochukwu, Ike & Co and Ahmed Zakari & Co, Joint External auditors be and are hereby re-appointed as external auditors of the Company.
That the Directors be and are hereby authorized to fix the remuneration of the auditors for 2023 financial year.

Special Business

That pursuant to Articles 6 & 48 of the Company’s Articles of Association, and the directors have so recommended, the Shareholders hereby approve the issue of a bonus issue of 1 (one) share for every 3 (three) shares held in the Company amounting to 692,932,133 units at 50k each at a total cost of N346,466,066.5 to members on the Register of Members as at July 4, 2023, to be set off from the
Company’s retained earnings in the 2022 audited accounts of the Company.
That the Company’s Memorandum and Articles of Association be amended as follows: A general meeting to be known as the annual general meeting shall be held once in every calendar year at such time (not being more than 15 months after the holding of the last preceding annual general meeting), place and manner as may be determined by the directors. A general meeting of the company may be held physically provided that those unable to attend can attend virtually via teleconferencing or through any other electronic or technological means as the directors may determine.
That the remuneration of the non-executive directors in respect of the financial year ending December 31, 2022, in the sums as stated in the financial statements for the directors be approved.
That the directors be and are hereby authorized to take all such actions and do all such acts, deeds, and things as they deem necessary to give effect to the above resolutions, including executing or authorizing the execution of all relevant documents and appointing any required professional adviser; and that all actions previously taken by the directors in that regard be and are hereby ratified”.