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11Plc Set To Takeover Lagos Continental Hotel From AMCON
11Plc, formerly Mobil Oil Nigeria Plc, is in the finalist stage of talks with the Asset Management Company of Nigeria (AMCON) to acquire the Lagos Continental Hotel (Formerly InterContinental Hotel Lagos).
This was contained in a letter signed by its Managing Director, Adetunji Oyebanji, to its shareholders, stakeholders and the general public, which was posted on the Nigerian Stock Exchange (NSE), New Telegraph reports.
The company stated that the acquisition, which would be done through its subsidiary, was subject to the terms and conditions agreed between the parties.
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According to Oyebanji, the acquisition of the asset was consistent with the company’s desire to diversify interests, given the current challenging environment in the downstream sector of the petroleum industry.
Oyebanji added that the company owns a number of prime properties in its real estate portfolio. “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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