Shareholders of International Hotel Investments approved a number of resolutions last week at an extraordinary general meeting held at Corinthia San Gorg Hotel.

The adoption of the resolutions was part of the implementation of a subscription agreement signed on 5 December by IHI, Corinthia Palace Hotel Company Limited and Istithmar Hotels FZE of Dubai.

By way of the resolutions, the shareholders approved an increase in the authorised share capital to one billion shares of one euro each. Furthermore, the shareholders waived their pre-emption rights to:

The issue of 178 million new shares to Istithmar in return for a cash injection in IHI to be utilised to fund the acquisition and development of new hotels; and

The issue of 192 million new shares to CPHCL as part of the purchase price for the acquisition of Corinthia Bab Africa Hotel in Tripoli and Corinthia Towers Hotel in Prague.

The above share issues are subject to certain conditions being met, including standard regulatory approvals which are expected in the near future.

The meeting approved the issue of up to 5,000,000 bonus shares out of revaluation reserves to be issued to the holders of the shares in issue on 30 June. CPHCL waived its rights to these bonus shares. The issue of the shares to Istithmar, CPHCL and the bonus shares will take place simultaneously.

The resolutions also contemplated certain changes to the memorandum and articles of association, mainly relating to corporate governance, introducing a list reserved matters requiring thresholds at shareholder and board level for approval, as also the introduction of a dividend policy guideline.