Elegant Hotels Group plc LON:EHG, the owner and operator of five upscale, freehold beachfront hotels and a beachfront restaurant on the island of Barbados, has told DirectorsTalk that trading in its Ordinary Shares is due to commence on AIM today. At Admission, Elegant Hotels will have a market capitalisation of approximately GBP88.8 million. It is the Directors’ intention that the total annual dividend payable will equate to an ongoing annual dividend yield of 7% (calculated on the basis of the Placing Price). The value attributed to Elegant Hotels’ freehold properties as at 15 April 2015 is $235.5 million, with Group debt on Admission of $46.4 million representing a loan to value ratio of approximately 20 per cent.
The Company, together with Zeus Capital, has successfully raised aggregate placing proceeds of GBP 63.0 million, including gross proceeds receivable by the Company of GBP 32.2 million which will be used to repay approximately GBP27.0 million of the Group’s existing debt which will reduce the Group’s gearing and annual interest costs.
The balance of funds raised will be used by the Company to pay transaction related fees as well as provide additional working capital to support and implement the Group’s growth strategy.
The remaining gross proceeds of GBP 30.8 million raised via the placing are receivable by certain shareholders of the Company who have sold ordinary shares as part of the placing.
Elegant Hotels Group plc LON:EHG, Sunil Chatrani the Chief Executive Officer commented: “Our AIM listing will increase the profile of the Company and its brands and, with the funds raised via our flotation strengthening our balance sheet, also provides the platform for Elegant Hotels to pursue its longer term expansion plans in the Caribbean. Elegant Hotels is run by a proven management team and we all remain focused on generating value for our new shareholders.”