FREQUENTLY ASKED QUESTIONS (FAQ) IN RESPECT OF

IKEJA HOTEL PLCs PUBLIC OFFER

Prepared by

What Is Ikeja Hotel Offering?

Ikeja Hotel is offering to the general public by way of an offer for subscription 3 billion ordinary shares of 50 kobo each at N3.00. The offer opens on Wednesday, September 7, 2006 and closes Friday, September 29, 2006.

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What is the History of the Company? Ikeja Hotel Plc is the owner of the Lagos Sheraton
Hotel & Towers and the core investor in Abuja Sheraton Hotel & Towers and the Federal Palace Hotel. Ikeja Hotel Plc commenced business in 1985 with the opening of the Lagos Sheraton Hotel & Towers. The principal business of Ikeja Hotel Plc is the provision of services in the hospitality industry, including the development of other tourist facilities The Company became a public limited liability company in 1983, and assumed its present name of Ikeja Hotel Plc, on February 5, 1991 in compliance September 2006 Page 3 with the requirements of the Companies and Allied

Who Are the Major Shareholders of the Company? As at February 9, 2006 the issued and fully paid shares of the Company were held as follows:
Wagmest Nigeria Limited RFC Limited 11.76% Development Company Ltd 14.90%

Nigeria Industrial 11.18%

Ess-Ay Investment Limited Alurum Investment Limited Dr. O. Otudeko, MFR, OFR Other Individuals & Associations

8.89% 8.71% 8.17% 36.39%

Except as stated above, no shareholder holds more 4 than September 2006 Page 5% of the issued share capital of the Company.

How Has the Company Performed Financially Over th Years? In the last five years the company has witnessed a growth of over 55% in Gross Earnings, from N2.7 billion in year 2001 to N4.19 billion in the year 2005 . Profit after taxation also grew by over 220% within the same period.

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What is the Purpose of the Offer?

This offer is being undertaken to enable Ikeja Hotel Plc refinance the leveraged acquisition of 51% holding of Capital Hotel Plc (owners of Abuja Sheraton Hotel & Towers) and continue the ongoing refurbishment at Sheraton Lagos and Abuja and is being underwritten on a firm commitment basis by Union Bank of Nigeria Plc to the tune of N1 billion.

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What Will The Proceeds Of The Offer Be Used For?

Proceeds of the Offer will be applied towards renovation of the Abuja Sheraton and Federal Palace Hotels, and position them to outperform the industry like the Sheraton Lagos Hotel, resulting in greater rewards to Shareholders This Offer will also help reposition the Company financially to access more funds if there is need for a strategic acquisition in the near future.

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What Are the Future Plans/Prospects of the Company?

Growth in the hospitality industry over the last five years has been driven by increased business travel from both within and outside the country. Fresh investment opportunities created by economic reforms, deregulation and liberalization of key segments of the Nigerian economy has led to a surge in domestic and foreign direct investment, which in turn has led to increased hotel rates and occupancies. This unfolding scenario will sustain demand for hotel and conferencing facilities over the medium term, translating to improved prospects for the 8 September 2006 Page Company in the years ahead. .

Why Should I Invest in Ikeja Hotel 1.Shares? With earnings yield projected at 10.33% and 13%
in the years 2007 and 2008 when compared with that of the projected returns from the money market (7% for the 91-day treasury bills and 12.5% for the 3-year FGN bond) and the current boom in the Nigerian Capital Market, which is expected to be sustained (due to the mismatch between the growing quantum of investible funds and the relatively small number of investment outlets leading to increase in stock prices in view of high demand), an investment in Ikeja Hotel provides an excellent opportunity for investors to earn strong and steady income via both dividend September 2006 Page 9 and capital appreciation.

Why Should I Invest in Ikeja Hotel 2.Shares ? The investment provides a viable avenue for
portfolio diversification. 3. The company is greatly undervalued as current market value for the companys properties is far in excess of the offer price at N3. 4. The Forecast PE Ratio of 5.77 makes the investment very attractive when compared with both current and forecast PE Ratios of quoted companies in other sectors of the economy.
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How easy will it be to Liquidate my Investment?

The shares of Ikeja Hotel Plc will be listed on the Nigerian Stock Exchange, making the investment easy to liquidate when there is need for cash.

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What Is The Minimum Level of Subscription?

A minimum of 5,000 shares amounting to N15,000 and multiples of 500 shares amounting to N1,500.

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How do I fill The Application Forms?

The instructions for completing the application forms are clearly stated on the back page of the Prospectus. If however you require further help or have questions, please contact the following hotlines: (01) 7619338 Financial Advisory (01) 7613741 Wholesale Banking Group

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How do I pay for the shares?

Payment can be made by a cheque or bank draft for the full amount of the purchase price of the shares applied for to any of the Receiving Agents listed in the Prospectus. The cheque or draft must be drawn on a bank in the same town or city in which the Receiving Agent is located and crossed Ikeja Hotel Offer with the name, address and daytime telephone number of the applicant written on the back.

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Where Can I Submit the Forms and Proceeds for the Offer?
Each application should be forwarded together with a cheque or bank draft for the full amount of the purchase price of the shares applied for to any of the Receiving Agents listed in the Prospectus.

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When Will I Certificates?

receive

my

Share

Share certificates will be dispatched to successful applicants within 15 working days of receiving the allotment approval from The Securities & Exchange Commission.

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Contact Details
Address: Plot 21 Ahmadu Bello Way, Victoria Island, Lagos Tel: Fax: 01 7619338 01 2714860

E-mail: aolashore@ecobank.com nfalade@ecobank.com kojo@ecobank.com

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