The Nigerian Stock Exchange (NSE) on Monday lifted an 18-month suspension placed on shares of Ikeja Hotel Plc since November, 2016. The NSE had suspended trading in the shares of Ikeja Hotel Plc following a dispute among the majority shareholders of the company. The dispute led to the removal of Goodie Ibru, its chairman, in 2015 at an extraordinary general meeting (EGM) by some shareholders.
According to the NSE, the suspension, which was pursuant to the Provisions of Rule 15.45 of its Rulebook, was to safeguard shareholders of the company as the dispute had negatively impacted the companyâ€™s governance structure.
The Securities and Exchange Commission (SEC) had to appoint a board chaired by Mr. Anthony Idigbe, to work and save the company from going under.
The exchange said the suspension was lifted after the company provided a status update to the market at a ‘Facts Behind the Restructuring session in Lagos last Friday.
“Consequently, trading in the shares of the company has resumed on the exchange. The SEC has been notified of this development,” it said.
Executive Director, Regulation, NSE, Tinuade Awe said the new board had complied with the necessary regulatory requirements and restored the company to the path of recovery.
“We are satisfied with the work the Ikeja Hotels have done till date this is an appropriate time to lift the suspension on the trading of the shares of the company. The company had its AGM to clear the backlog of certain AGMs. It was this consideration that led the quotation committee of NSE to decide that it is an appropriate time to lift the suspension,” Awe said.
Apart from Idigbe, other members of the board of Ikeja Hotels Plc are: Alex Thomopolus, Waheed Olagunju, Toke Alex Ibru, Fadeke Alamutu, Kunle Aluko, Ufuoma Ibru and Abatcha Bulama.
Idigbe sad a forensic audit of the company would be carried out soon and the management will strive to sustain investorsâ€™ confidence.
He said the management had been able to settle all the conflicts with the old management, while ensuring that both the management and shareholders operate in the same direction.
Meanwhile, trading at the stock market remained bearish as the NSE All-Share Index declined by 0.12 per cent to close at 40,425.07, while market capitalisation ended at N14.64 trillion.
The depreciation recorded in the share prices of Access Bank, UBA, FBN Holdings, GT Bank, and Stanbic IBTC Holdings were mainly responsible for the decline.