Ikeja Hotels Plc was one of the most actively traded stocks on the Nigerian Stock Exchange last week. 279,110,328 shares valued at N572 million were traded in 6 deals at an average price of N2.05.
The deal is a significant one, as it represents over 10% of the company’s issued share capital. Ikeja Hotels has a total of 2.08 billion shares outstanding.
Who’s Buying/Selling?
The company is yet to notify the Nigerian Stock Exchange of the transaction as required.
As at the 31st of January, 2017, the following shareholders held 5% or more of the company’s issued share capital.
The company had been in an ownership tussle between two factions of the Ibru Family. One led by Goodie Ibru, who founded the firm, and the other led by Maiden Ibru, whose husband, Alex Ibru, invested in the company.
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.
Goodie is, however, represented by his son, Ufuoma Ibru, while the Maiden Ibru faction is represented by her son Toke Alex-Ibru, and brother, Alex Thomopoulos.
How has the company fared in 2018?
Results for the third quarter ended September 30, 2018 show that revenue increased from N8.5 billion in 2017 to N9.7 billion in 2018. Profit before tax increased from N790 million in 2017 to N1 billion in 2018. Profit after tax also rose from N537 million in 2017 to N664 million in 2018. Earnings per share also jumped from N0.26 in 2017 to N0.36 in 2018.
The company could, however, fall short of the forecast it had set for the year. The company had set a forecast turnover of N13.1 billion, profit before tax of N2 billion, and profit after tax of N1.5 billion.
Shares have outperformed the NSE
Year to date, the company’s shares are up 15.17%, outperforming the All Share Index which is down 16.17%.
About Ikeja Hotels Plc
Ikeja Hotels was incorporated as Property Development Company on November 18, 1972. The company’s name was later changed to Ikeja Hotels Limited in 1980. It was listed on the Nigerian Stock Exchange in 1983 and assumed its present name on February 5, 1991.
The company’s subsidiaries include Hans Gremlins Limited (through which it has an indirect shareholding in Sheraton Hotels Abuja). The company is also a shareholder in Tourist Company of Nigeria Plc (which owns the Federal Palace Hotels and Casino, Lagos).