11 Plc, formerly Mobil Oil Nigeria Plc said that it has finalised discussions with the Asset Management Company of Nigeria (AMCON) to acquire Lagos Continental Hotel through its subsidiary company.
‘’11 Plc currently owns several prime properties in its real estate portfolio fully rented to blue chip tenants and the acquisition of this asset is consistent with our desire to diversify our interests given the current challenging environment in the downstream of the petroleum industry’’ the company said, adding that fuel margins in the industry has remained stagnant for several years in the highly competitive and regulated sector.
‘’We anticipate that this asset will contribute positively to earnings and underlines the faith of its stakeholders in the future of the Nigerian economy.’’
The Company said it plans to partner with a major international brand to provide world class service synonymous with all its operations.
‘’The assets 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,’’ the company’s managing director Adetunji O Oyebanji said in his letter conveying the notification of the deal to shareholders, stakeholders and the Nigerian Stock Exchange (NSE). The value of the deal is not included in his letter.
‘’We would like to assure our numerous stakeholders that we remain committed to delivering outstanding value and robust returns in the years ahead. However, the short term cashflow and EBITDA could be under strain as a result of funds needed to renovate and upgrade the hotel to attract a 5 star branding.
We also like to assure the employees of the hotel that they will be treated with the utmost dignity and respect during the transition and seek their cooperation to make the takeover a smooth one.’’