(Alliance News) - easyHotel PLC on Friday said it has raised GBP11 million to fund the company's hotel roll-out strategy.
The budget hotel operator has raised the new capital via subscription and issue of 11.6 million new shares at 95.0 pence each by major shareholder Citrus Holdco, a company owned by a consortium comprising real estate developer Cadim Fonds Inc and ICAMAP Investments Sarl.
Citrus Holdco in October 2019 acquired around 69% stake in easyHotel. The investment vehicle initially announced its intention to acquire the entire hotel chain in August, however, easyHotel founder Stelios Haji-Ioannou insisted that he would block any acquisition offer for the hotel chain with his stake in the company.
The share subscription price represents a 36% premium to the 70 pence per share price of easyHotel stock on Thursday. Shares on Friday morning in London were up 19% at 83.00p each.
"Citrus Holdco Limited confirmed at the time of its Offer for easyHotel's shares last year that it was committed to supporting easyHotel to achieve the board's strategic vision for the business more quickly and effectively. The proceeds from this proposed subscription will provide the business with the capital it needs to pursue the next stage of its owned hotel roll-out strategy. We are excited about the development pipeline and, in particular, the potential for accelerating our targeted growth of the brand in Europe," said easyHotel Chair Harm Meijer.
By Tapan Panchal; tapanpanchal@alliancenews.com
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