Summary: The Nigeria Exchange Limited (NGX) has granted approval for the delisting of Capital Hotels Plc’s shares, paving the way for the company to pursue strategic opportunities. The approval is contingent on the establishment of an escrow account to facilitate payments to exiting shareholders who have accepted the Exit Consideration of N5 per share. The move is seen as a means to explore alliances and collaborations that could enhance earnings and synergize benefits.
Key Points:
- NGX has given the green light to Capital Hotels Plc for the delisting of its shares, allowing the company to venture into strategic opportunities.
- Capital Hotels Plc has set up an escrow account with CardinalStone Registrars Limited, ensuring funds are available to remunerate shareholders who accepted the Exit Consideration of N5 per share.
- The decision to delist is motivated by the desire to explore strategic opportunities, alliances, and collaborations that can boost earnings and provide synergized benefits while reducing regulatory obligations.
- 22 Hospitality Limited holds the majority stake in Capital Hotels Plc with a 66.13% ownership, according to the audited financial statement for the year ending December 31, 2022.
- The delisting will not impact the existing employment contracts of staff or the composition of the company’s Board of Directors.
Analysis: Capital Hotels Plc’s move to delist from the NGX reflects a strategic shift towards exploring opportunities that can enhance its operations and profitability. By reducing regulatory obligations associated with being a listed company, Capital Hotels aims to forge alliances and collaborations that can drive growth.
Source: Market News Nigeria