Ibru family woes deepen as Stock Exchange suspends Hotel chain

The Nigerian Stock Exchange (NSE) has placed full suspension on Ikeja Hotel Plc as the crisis of confidence within the Ibru family continues to take tolls on the hotel and hospitality chain.

The Ibrus founded and still own the majority equity stake in Ikeja Hotel.

With full suspension, no trading and price movement will be allowed on the shares of Ikeja Hotel as against technical suspension that allows trading without price movement.

The Exchange in a suspension notice stated that it took the decision “to safeguard the investments of shareholders of Ikeja Hotel Plc following the continued dispute between the major shareholders which has negatively impacted on the company’s governance structure”.

According to the Exchange, the suspension was pursuant to the provisions of rule 15.45: suspension on trading of securities, rulebook of the Exchange, 2015.

The NSE has already informed Securities and Exchange Commission (SEC) of the suspension, which took effect with immediate effect on Thursday November 10, 2016.

The Exchange noted that the suspension will be in place until further notice.

Ikeja Hotel, incorporated in 1972 and quoted on the NSE in 2007, controls a chain of hotels directly and through other subsidiaries and affiliates including Tourist Company of Nigeria (TCN) Plc and Capital Hotel Plc.

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Ikeja Hotel owns Sheraton Hotel, Ikeja, Lagos. TCN owns Federal Palace Hotel while Capital Hotel owns Abuja Sheraton Hotel. The Ibru family owns the single largest individual shareholding.

The EFCC had recently declared Mr. Goodie Ibru, who chairs the chain of hotels, wanted alleging capital market fraud, stealing and money laundering among others. The family of Mr. Goodie Ibru immediately responded accusing EFCC of bias and mischief, stating that the public notice declaring Goodie Ibru wanted was scandalous, misleading and unfortunate.

The Ibru family had ran the hotel chain without any notable wrangling until the demise of Mr. Alex Ibru, which opened up a family feud between his wife Mrs Maiden Ibru and his elder brother, Mr. Goodie Ibru. While Goodie Ibru chaired the hotel chain, other Ibrus had been on the board of Ikeja Hotel.

In earlier response to the attempt to oust him as chairman, Goodie Ibru had dismissed earlier claims of corporate abuses, noting that those opposed to him had rather ganged up to frustrate attempts to recapitalize the company. Goodie Ibru’s family in the counter-notice to the EFCC notice, reiterated his position that the Ikeja Hotel crisis “centres on family misunderstanding and boardroom politics.”

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