Firm linked to Otudeko's Honeywell Group buys 14% stake in Ikeja Hotel

HGL Real Estate Limited, a company with a minimal online footprint, has purchased a 14.1 percent stake in the Lagos-listed hospitality firm Ikeja Hotel. The acquisition, valued at over 13.2 billion naira based on Thursday's closing share price, positions HGL Real Estate as a major shareholder, surpassed only by Oma Investments Limited's 25.8 percent interest.

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HGL Real Estate Limited, an affiliate of Honeywell Group Limited, that it has acquired 305,323,525 units of Ikeja Hotel Plc’s shares.

Ikeja Hotel confirmed receiving notification of the share purchase from HGL Real Estate Limited, an affiliate of Honeywell Group Limited. Despite its substantial financial capacity, HGL Real Estate does not operate a known website. Furthermore, it is not listed among the subsidiaries on the Honeywell Group Limited's website, even within their real estate division, which includes Anchorage Leisures Limited and Uraga Real Estate. Checks with the Corporate Affairs Commission also yielded no information on the company.

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As a member of the board, Mrs Adeoye will play a crucial role in representing HGL’s interest in the company and ensuring continued value creation for stakeholders.

This investment follows Honeywell Group's appointment of Kemi Adeoye, its chief financial officer, to Ikeja Hotel's board as a non-executive director in May 2023. At the time, Honeywell Group stated Adeoye would represent its interests and ensure value creation. The group also noted the investment aligns with its mission to build and invest in businesses that create enduring value. This move comes after Honeywell Group sold its 71.7 percent stake in Honeywell Flour Mills to Flour Mills in 2022 for an enterprise value of 80 billion naira. Oba Otudeko, linked to the group, previously served as chairman of FBN Holdings but was ousted in 2021 due to corporate governance breaches cited by the Central Bank of Nigeria.

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HGL’s investment in Ikeja Hotel Plc is in line with its mission to create, build, and invest in great businesses that create enduring value and improve lives.