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Mass resignation trails acquisition of Sheraton’s parent company after Indian brothers’ take over

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Following the acquisition of a majority stake in Capital Hotel by 22 Hospitality Limited, the entire board of the former have resigned, ushering in a new era in the hospitality business.

The previous board, comprising Anthony Idigbe (Chairman), Alexander Thomopulos, Fadeke Olugbemi, Helen Da-Souza, and Akpofure Ibru resigned from their position in Capital Hotel as a result of the acquisition.

Ripples Nigeria gathered their resignation came after 22 Hospitality Limited, a company owned by Kansagra family, bought 66.13% equity stake in Capital Hotel.

The stake, which represents 2,090,199,140 Ordinary Shares of 50 kobo each, was worth about an estimated N14 billion. It was acquired from Hans Gremlin Nigeria Limited, Associated Ventures International Limited and in a private placement.

A document sent to the investing public, and obtained by Ripples Nigeria, disclosed that 1,611,995,510 shares, representing 51% stake, were acquired in a private placement.

Hans Gremlin Nigeria Limited sold 456,641,337 shares, representing 14.45%, to 22 Hospitality Limited, and Associated Ventures International Limited sold 21,562,293 shares (0.68% stake) to the company.

Read also:Flour Mills appoint new Honeywell management, board after takeover

This brings the total stake acquired by 22 Hospitality Limited, which is also known as 11 Hospitality Limited, to 66.13%. Both companies are subsidiary of 11 Plc, formerly known as Mobil Oil Nigeria.

The acquisition of the majority stake will add Capital Hotel’s hospitality business, which includes Sheraton Abuja Hotel, to Lagos Continental Hotel, which was acquired by 11 Hospitality Limited in December 2019.

The Kansagra family consist of Ramesh Kansagra and Rishi Kansagra, both of whom are directors on the board of 11 Hospitality Limited. The British-Indian brothers would also be sitting on the board of Capital Hotel, with Ramesh as Chairman and Rishi as Non-Executive Director.

Other board members appointed to replace the directors that resigned are Ravi Bachu – Executive Director; Aminu Abdulkadir- Non-Executive Director; Chief Paul Obi – Non-Executive Director; and Pascal Demarchi – Executive Director.

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