Massive resignation of Sheraton’s parent company after the sales

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

The previous board of directors, consisting of Anthony Idigbe (chairman), Alexander Thomopulos, Fadeke Olugbemi, Helen Da-Souza and Akpofure Ibru, resigned from their position at Capital Hotel following the ‘acquisition.

Daily Trust announced on Tuesday that 22 Hospitality had acquired the first batch of 1,611,995,510 ordinary shares, representing 51% of the hotel’s equity through private placement, Capital Hotel said in a note filed with the Nigerian Exchange Limited. He said all required regulatory approvals have been received for the transaction.

It was established that the resignation from the board came after 22 Hospitality Limited, a company owned by the Kansagra family, bought a 66.13% stake in Capital Hotel.

The stake, which is 2,090,199,140 ordinary shares of 50 kobo each, was worth around N14 billion. It was acquired from Hans Gremlin Nigeria Limited, Associated Ventures International Limited and through a private placement.

However, a document sent to the investing public and obtained by Daily Trust revealed that 1,611,995,510 shares, representing a 51% stake, had been acquired in a private placement.

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

The Kansagra family consists of Ramesh Kansagra and Rishi Kansagra, both directors on the board of 11 Hospitality Limited. The Anglo-Indian brothers would also sit on the board of Capital Hotel, with Ramesh as chairman and Rishi as non-executive director.

Sallie R. Loera