The Nigerian Stock Exchange (NSE) has lifted a 2-year technical suspension placed on Ikeja Hotel Plc. Executive Director, Regulation, Tinuade Awe disclosed this in a document made available to Vanguard.
Why is the suspension being lifted?
Awe stated that the suspension was lifted because the new board had met its conditions.
“We are satisfied with the work the Ikeja Hotels have done to date this is an appropriate time to lift the suspension on the trading of the shares of the company.
Awe also disclosed that the company holding its Annual General Meeting (AGM) played a key role in the NSE lifting the suspension.
What led to the suspension?
The company has been caught in an ownership tussle between Goodie Ibru and a faction led by Maiden Ibru. Goodie was accused of poor corporate governance, a charge he robustly denied. They obtained a court order granting them permission to hold an Extraordinary General Meeting (EGM) removing him as Chairman. Goodie then obtained a court order restraining them from doing so.
Goodie stepped down from the board in February last year, citing the need for a new generation of Ibrus to take over the firm. This was despite a court order affirming his position as chairman. The board was reconstituted and Anthony Idigbe (SAN) was appointed as chairman.
Ikeja Hotel closed yesterday’s trading session at N1.78. Results for the first quarter ended March 2018, show revenue increased from N2.7 billion in 2017 to N3.0 billion in 2018. Profit before tax increased from N180 million in 2017 to N328 million in 2018.
The company was incorporated as Properties Development Limited on November 18, 1972. The company’s name was changed to Ikeja Hotels Limited in 1980. It became a public company in 1983 and assumed its present name on February 5, 1991.