City Lodge’s Strategic Triumph: AGM Wins and Odd-Lot Offer Amendments Signal Robust Growth and Investor Confidence

City Lodge Hotels Limited, a prominent player in the South African hospitality sector, has revealed the outcomes of its recent Annual General Meeting (AGM) held on Thursday, 23 November 2023. Shareholders witnessed a series of resolutions, crucial for the company’s future, with notable attention on the Odd-lot Offer.

AGM Highlights

Re-election of Directors

The re-election of directors saw overwhelming support from shareholders. Mr. G G Huysamer and Dr. M S P Marutlulle both secured a staggering 93.72% approval, reflecting shareholder confidence in their leadership.

External Auditor Re-appointment

The resolution for the re-appointment of the external auditor received unanimous support, with 100% approval from shareholders.

Adoption of Conditional Share Plan

City Lodge’s proposal for the adoption of a Conditional Share Plan garnered 100% approval, emphasizing shareholders’ alignment with the company’s strategic plans.

Odd-Lot Offer Approval

A pivotal moment in the AGM was the approval of the Odd-lot Offer, allowing City Lodge to repurchase odd-lot holdings. The resolution passed with 100% support, paving the way for the company to proceed with the offer.

Odd-Lot Offer Timetable Amendments

Following the successful AGM, City Lodge has adjusted the timetable for the Odd-lot Offer, taking into consideration the upcoming public holiday on Friday, 15 December 2023. The revised timetable ensures a smooth and efficient process for shareholders.

Key Dates for Odd-Lot Offer

Odd-Lot Offer Price

The Odd-lot Offer price, set at a 5% premium to the 30-day volume-weighted average price (VWAP) of a City Lodge Share as of Friday, 1 December 2023, ensures a fair and attractive proposition for shareholders.

Important Notes for Shareholders

1. Trading Information: Shareholders are reminded that City Lodge Shares can only be traded in dematerialized form.
2. Election Process: Dematerialized Odd-lot Holders are urged to notify their CSDP or broker of their election by the specified cutoff time. Certificated Odd-lot Holders opting to sell their holdings should ensure timely submission of the Form of Election and Surrender.
3. Non-Residents Consideration: Non-resident Odd-lot Holders residing outside the Common Monetary Area are advised to refer to the Circular for processing and payment details.
4. Automatic Acceptance: Shareholders who do not make an election by the deadline will automatically be deemed to have accepted the Odd-lot Offer.
5. Withdrawal Right: The directors reserve the right to withdraw the Odd-lot Offer at their discretion before the finalization announcement.

Shareholder Empowerment

City Lodge’s commitment to transparent governance and shareholder empowerment is evident in the resounding approval of various resolutions. The AGM’s success reinforces the trust shareholders place in the company’s leadership and strategic direction.

Looking Ahead

As City Lodge moves forward with the Odd-lot Offer, it demonstrates a proactive approach to capital structure optimization and shareholder value creation. The company’s agility in amending the offer timetable showcases its commitment to a seamless and efficient process.

The hospitality giant continues to navigate the evolving landscape, ensuring its strategies align with market dynamics and shareholder expectations. The Odd-lot Offer, with its enhanced timetable, reflects City Lodge’s dedication to providing shareholders with value-enhancing opportunities.

City Lodge Hotels Limited’s AGM and subsequent amendments to the Odd-lot Offer timetable mark significant milestones for the company. The resolute support from shareholders and the strategic adjustments underscore City Lodge’s resilience and adaptability in the ever-changing business environment.