On 28 April 2022, International Hotel Investments plc announced that it has entered into a preliminary Term Sheet with the United Development Company of Qatar (“UDC”) to assess a possible subscription for shares in IHI. The term sheet provides that subject to the attainment of all necessary approvals, a satisfactory completion of a due diligence process, and satisfactory negotiation and completion of all requisite definitive agreements, UDC will subscribe to 100,000,000 new shares to be issued by IHI at a subscription price of €1.22 per share. Furthermore, UDC will be granted an option to subscribe for an additional 200,000,000 new shares within one year at a price of €1.28 per share.
UDC is the owner and developer of ‘The Pearl’ in Doha, Qatar, which is a luxury residential, commercial, social and hospitality development. UDC is a listed company whose main shareholder is the Pension Fund of Qatar.
As a result of this development, during the upcoming Annual General Meeting scheduled to be held on 9 June 2022, IHI will be seeking the consent of its shareholders to make disclosures of information to UDC. IHI will also ask its shareholders to authorise its Directors to issue and allot up to 300,000,000 new shares.
IHI added that this announcement comes in the wake of an ever-improving performance following the material negative impact from the pandemic. IHI is now forecasting that the 2022 financial results will surpass those for 2021 as its performance since the start of the year show that budgets are being achieved.