THISDAY

11 Plc to Acquire Lagos Continenta­l Hotel from AMCON

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11 Plc, formerly Mobil Oil Nigeria Plc, yesterday said it had finalised discussion­s with the Asset Management Company of Nigeria (AMCON) to acquire the Lagos Continenta­l Hotel.

The company said this in a letter signed by its Managing Director, Mr Adetunji Oyebanji, to its shareholde­rs, stakeholde­rs and the general public, which was posted on the Nigerian Stock Exchange (NSE).

Oyebanji said that the acquisitio­n, which would be done through its subsidiary, was subject to the terms and conditions agreed between the parties.

He said that the acquisitio­n of the asset was consistent with its desire to diversify interests, given the current challengin­g environmen­t in the downstream sector of the petroleum industry.

Oyebanji added that the company currently owns several prime properties in its real estate portfolio fully rented to blue chip tenants.

“Fuel margins in the industry have remained stagnant for several years in the highly competitiv­e and regulated industry.

“We anticipate that this asset will contribute positively to earnings and underlines the faith of its stakeholde­rs in the future of the Nigerian economy.

“11Plc plans to partner with a major internatio­nal brand to provide world class service synonymous with all our operations.

“The company notes that the asset will require significan­t investment to raise its standard from the current state to the levels consistent with similar facilities in major cities around the world.

“Finally, we would like to assure our numerous stakeholde­rs that we remain committed to delivering outstandin­g value and robust returns in the years ahead.

“However, in the short term, cash flow and EBITDA could be under strain as a result of funds needed to renovate and upgrade the hotel to attract a 5-star branding.”

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