The Nigerian Stock Exchange (NSE) has suspended the trading of Ikeja Hotel Plc shares in a bid to safeguard the investments of its shareholders.
This is coming on the heels of continued dispute between the major shareholders which has negatively impacted on the Company’s governance structure.
According to a report obtained by Daily Times from the NSE, The Securities and Exchange Commission (SEC) has been notified of this development and the suspension will be in place until further notice.
The report further read “that pursuant to the Provisions of Rule 15.45: Suspension on Trading of Securities, Rulebook of The Exchange, 2015 (Dealing Members’ Rules) full suspension has been placed on trading in the shares of Ikeja Hotel Plc (“the Company”) with effect from 10 November 2016.
The said dispute may however be connected to the Economic and Financial Crimes Commission (EFCC) probe launched earlier this year, into Sun International’s initial investment in Tourist Company of Nigeria (TCN), which owns and operates the five-star Hotel in Lagos.
TCN was founded by the Ibru clan, Chief Michael Ibru, and his younger brothers – Alex and Goodie Ibru.
Sun International then bought a 49 percent stake of the Nigerian Stock Exchange (NSE) listed TCN in 2006, becoming the largest single shareholder in the company.
In recent years, however, Sun has been drawn into a dispute between the family of the late Mr. Alex Ibru, who also founded The Guardian Newspapers, and his younger brother, Goodie, who was the Chairman of Ikeja Hotels Plc – owner of Sheraton Hotels and Towers in Lagos and Abuja – before he was forced out by its shareholders two years ago.
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