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Tuesday, 02 December, 2008 03:43 am
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| BPE set to list FG's shares in Sheraton Hotels |
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| Monday, 11 August 2008 | ||||||
     More than 18 months after its last activity on the capital market, the Bureau of Public Enterprises (BPE) will go back this week to list by introduction the Federal Government’s shares in Capital Hotels Plc (owners of Abuja Sheraton Hotels and Towers) on the floor of the Nigerian Stock Exchange (NSE). The core investor sale of 51 % to Hans Gremlin Nigeria Limited was successfully concluded in 2002. In May 2007, the National Council on Privatisation (NCP) approved the divestment of the remaining Federal Government’s shares in the hotel. Stockbrokers are to offload 637,919,840 shares at N6.50 per share, representing the prevailing market price. The shares will be sold on the floors of seven stock exchanges across the nation to satisfy the requirement of the privatization law that such sale be done on the basis of equality of federal constituencies. To address the socio-political imperative of wide share ownership, the sale will be conducted not only on the floor of the NSE in Lagos but also in Abuja, Port Harcourt, Onitsha, Ilorin, Yola and Kano. The trading arrangement is as follows: * List the entire shares and sell some quantum on the floor of the Nigerian Stock Exchange in Lagos on August 14, 2008; * Move the sale to the floor of the NSE in Abuja on August 21, 2008; * Sale of shares to be carried out simultaneously on August 28, 2008 on Kano and Port Harcourt trading floors of the NSE; and * The last outing on September 4, 2008 would be on Yola, Onitsha and Ilorin trading floors of the NSE Capital Hotels Plc was partially privatized by the sale of the company’s shares to the core investor (Hans Gremlin). Prior to its initial privatization, the hotel was heavily indebted to foreign creditors to the tune of $300 million as at December 31, 2000. This posed a major challenge in attracting the interest of potential investors to the hotel. In resolving this problem, the Federal Government undertook to pay the liability and converted the value of the debt to equity. At its Extraordinary Meeting of 12th November, 2001, the company passed the resolution giving effect to that conversion in favour of the Federal Government, thereby increasing the share capital of the firm from N200, 000, 000 to N800, 000, 000 translating to 1, 600, 000, 000 ordinary shares of 50 kobo each. The conversion transferred 86.95 % of the company’s shares to the Federal Government, out of which 51 % was sold to the core investor. The balance of 35.95 % was added to the shares held by some government agencies amounting to 41.19 % now earmarked for sale on the floor of the NSE. In other words, 637,919,840 units of shares of Capital Hotels Plc would be on offer. Fifteen stockbrokers have been endorsed for the marketing and disposal of Federal Government’s shares in the hotel. They are Fidelity Union Securities Limited; Union Capital Limited; Amyn Investment Limited; Greenwich Securities Limited; Heritage Capital Market Limited; Icon Stockbrokers Limited; Vetiva Capital Market Limited; and Mutual Alliance Limited. Others are Springboard Investment Limited; Forte Asset Management Limited; Emerging Capital Limited; Camry Securities Limited; North Bridge Securities Limited; Equity Capital Solutions Limited, and Hedge Securities & Investment Limited. Fidelity Union Securities is the Lead Stockbroker and Fidelity Bank Plc is the Financial Lead Adviser to the transaction. Abuja Sheraton Hotels controls the second largest share of the hospitality industry in Abuja with its current average of 42 % room occupancy. The hotel plans to undertake a major modernization of its equipment and re-branding of its rooms in order to capture a larger portion of the hospitality market. Chigbo Anichebe Head, Public Communications August 10, 2008  Quote this article on your site | Print | E-mail
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