Shareholders of Ikeja Hotel Plc have endorsed a total dividend of N162.18m recommended by the board for the December 31, 2023 financial year.
The approval was given at the company’s 47th Annual General Meeting (AGM) held in Lagos, according to the company’s notice to the Nigerian Exchange Limited seen by NewsNGR.
Also, as part of the resolution at the AGM, the shareholders resolved to cancel the previously approved bonus issue and rights issue, pending all applicable regulatory approvals.à
Specifically, the Company has annulled the earlier approved bonus issue of one share for every three shares held, which amounted to 692,932,133 shares at 50 kobo each, totaling N346,466,066.50.
This bonus issue was to be allocated to shareholders on the Register of Members as of July 4, 2023 and was to z offset against the Company’s retained earnings as reported in the 2022 audited accounts, in accordance with Articles 6 and 48 of the Company’s Articles of Association.
Additionally, the previously approved rights issue of 1,133,888,945 ordinary shares at 50 kobo each, priced at N2 per share, has also been cancelled.
The resolution reads, “That subject to all applicable regulatory approval(s), the Company hereby cancels the previously approved bonus issue of 1 (one) share for every 3 (three) shares held in the Company amounting to 692,932,133 units at 50k each at a total cost of N346,466,066.5 to members on the Register of Members as at July 4, 2023, (set off from the Company’s retained earnings in the 2022 audited accounts of the Company), under Articles 6 & 48 of the Company’s Articles of Association.
“That the previously approved rights issue of 1,133,888,945 ordinary shares of 50 kobo each at N2 per share be cancelled.”
Shareholders also authorised adjustments to director compensation, that annual fee for each non-executive director has been set at N2,000,000, while the annual fee for the chairman has been set at N2,500,000. These revised fees will be effective from January 1, 2024.
Ikeja Hotel closed its last trading day on Thursday, August 1, 2024 at N7.35 per share on the Nigerian Stock Exchange (NGX). The company began the year with a share price of N6.00 and has since gained 22.5 per cent on the price valuation.