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11PLC to acquire Lagos Continental Hotel from AMCON

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11PLC to acquire Lagos Continental Hotel from AMCON

Petroleum products marketer, 11Plc (formerly known as Mobil Oil Nigeria PLC) on Monday announced its plans to acquire the Victoria Island-based Lagos Continental Hotel through its subsidiary company.

In a notice to the Nigerian Stock Exchange (NSE) and signed by Adetunji A. Oyebanji, its Managing Director/Chief Executive Officer, the company said it has finalised discussions with the Asset Management Company of Nigeria (AMCON) preparatory to the acquisition of the hotel.

Once the deal is concluded, 11Plc will add Continental Hotel to the prime properties in its real estate portfolio most of which are rented to blue chip clients.

The strategic move is a step further in the company’s diversification into the real estate sector, a triggered by the uncertainty and challenging business atmosphere that had come to define operations in the downstream sector of the petroleum industry.

“Fuel margins in the industry have remained stagnant for several years in the highly competitive and regulated industry. We anticipate that this asset will contribute positively to earnings and underlines the faith of its stakeholders in the future of the Nigerian economy,” the company said in a statement.

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According to the statement, 11Plc will enter into partnership with a major international brand in the real estate sector.

The firm said the asset would require substantial transformation to lift its standard from the current state to levels that can measure up to international best practices and similar facilities in the major cities of the world.

The company changed its brand name in May 2017 from Mobil Oil Nigeria Plc to 11Plc (pronounced as double one) following the exit of its then majority shareholder, Exxon Mobil from Nigeria oil and gas downstream sector.

In the deal, NIPCO Investments Limited acquired 60 percent stake in the company following Exxon Mobil’s divestment.

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