Ikeja Hotel to sell company’s stake, declares bonus share, dividends for shareholders

Ikeja Hotel has announced that the hospitality firm will sell a stake in the company to raise billions of naira, as it rolls out bonus shares and dividends to shareholders.

Ripples Nigeria gathered that Ikeja Hotel will raise fresh capital through Rights Issue, as existing shareholders will be given the opportunity to buy 1.13 billion shares offered directly by the firm.

Ikeja Hotel disclosed this on Wednesday in a corporate document filed with the capital market authority, the Nigerian Exchange Limited (NGX).

Although Ikeja Hotel didn’t reveal the price of the shares that will be sold in the Rights Issue, based on its last closing price of N3.13 kobo on Tuesday, the shares to be placed on sale are worth N3.54 billion.

Also, the Rights Issue is only open to shareholders who are on the register of members as of December 13, 2022.

READ ALSO:NGX: May & Baker, Ikeja Hotel among top losers as market cap drops to N28.2tr

“That additional capital be raised by the issuance of 1,133,888,945 units of unissued shares of the company as a rights issue at the rate to be determined by the board of directors to existing 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.”

Also, Ikeja Hotel will issue 692.93 million bonus shares to its shareholders that were named on the company’s Register of Members as of July 4, 2023, the hospitality firm has revealed in a statement to the capital market.

The company said shareholders will receive one share for every three shares held in Ikeja Hotel. The shares to be issued are valued at N346.46 million and will be paid out of the firm’s retained earnings in the 2022 audited accounts.

“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,” the document reads.

Aside from the bonus shares, shareholders will also receive N155,90 million in total, as dividends.

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