Lido Company is preparing the sale, via the stock exchange, of 1.89% of the shares in the company that owns the 5-star Intercontinental hotel in Bucharest.
The Board of Directors of Lido Bucharest has convened the Extraordinary General Meeting of Shareholders for February 11, with an agenda including the proposal to sell 15.78 million shares, representing 1.89% of the share capital of Compania Hoteliera Intercontinental Romania.
Additionally, an evaluation report prepared by a certified evaluator will be presented, which is intended to form the basis of the transaction expected to take place on the AeRO alternative trading system of the Bucharest Stock Exchange, where both issuers are listed. At the last market price of 0.1800 RON/share for the titles of the company operating the Intercontinental hotel, its market capitalization stands at 150.04 million RON (approximately 32.15 million EUR), and the value of the stake Lido intends to divest is thus 2.84 million RON (approximately 608,000 EUR).
The proceeds would be used for the company’s development strategy over a 5-year period (2019-2024). Lido Company no longer includes the hotel of the same name in Bucharest, but it owns other iconic buildings, such as the Modern Business Center (the building housing the Bucharest Stock Exchange) and the Union International Center.
If the transaction is approved by shareholders and successfully concluded, Lido will still retain a 10.00% stake in the company operating the Intercontinental Bucharest hotel.
Source: Profit
Frequently Asked Questions
What percentage of shares is Lido Company selling?
Lido Company plans to sell a 1.89% stake, consisting of 15.78 million shares, in the company that operates the Intercontinental Hotel in Bucharest.
Where will the transaction take place?
The sale is expected to be carried out on the AeRO alternative trading system of the Bucharest Stock Exchange (BVB).
What will the proceeds from the sale be used for?
The funds obtained from the sale will be allocated toward Lido Company’s 5-year development strategy for the period 2019-2024.