HGL Real Estate Limited, a company with no significant digital presence and linked to billionaire tycoon Oba Otudeko, has acquired a 14.1 per cent stake in Lagos-listed hospitality provider Ikeja Hotel Plc. The acquisition, valued at over N13.2 billion based on Thursday's closing share price, was disclosed in a regulatory filing on Thursday.
Details of the Share Acquisition
According to the filing, Ikeja Hotel received notification from HGL Real Estate Limited, an affiliate of Honeywell Group Limited, that it had acquired 305,323,525 units of Ikeja Hotel Plc's shares. This purchase places HGL Real Estate among the top seven shareholders of the company, second only to Oma Investments Limited, which holds a 25.8 per cent interest.
Lack of Digital Presence Raises Questions
HGL Real Estate does not own or operate a known website, which is unusual for a company financially capable of owning shares worth several billion naira. Even on the Honeywell Group Limited (HGL) website, HGL Real Estate is not listed among the group's subsidiaries, including its real estate subsidiaries such as Anchorage Leisures Limited and Uraga Real Estate.
Checks by Premium Times with the Corporate Affairs Commission and the commission's beneficial ownership register did not return any information related to the company. This opacity has raised questions about the firm's ownership and operations.
Honeywell Group's Previous Moves
In May 2023, Honeywell Group announced the appointment of Kemi Adeoye, its chief financial officer, to the board of Ikeja Hotel as a non-executive director. At the time, Honeywell Group stated, "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." The group also said, "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."
Previous Transactions by Honeywell Group
In 2022, Honeywell Group completed a deal to sell its 71.7 per cent shareholding in Honeywell Flour Mills to Flour Mills of Nigeria, the country's largest flour-maker. The enterprise value of that transaction was N80 billion.
Oba Otudeko's Background
Oba Otudeko served as the chairman of FBN Holdings (now First HoldCo) from 2012 until 2021, when he was removed during a board shake-up by the Central Bank of Nigeria for his role in what the regulator described as a breach of corporate governance. His business interests span multiple sectors through Honeywell Group.
