PROTEA Hotels has reverted to 100% South African ownership.

This comes after a consortium comprising the company’s existing broad-based black economic empowerment shareholders, Investec Private Equity and Protea Hotel management, bought back shares held by Stella Group, the Australian travel service and hospitality provider. Stella in 2007 had acquired the whole of Protea Group for R1,48bn and then sold back 26% of the company to the BBBEE shareholders, explained executive chairman, Otto Stehlik. He said the current deal, which is still subject to approval from the SA Competitions Commission, would see shareholding divided equally between the three parties, but with the BBBEE group holding the leading share. The BBBEE group includes Popcru Investment Holdings, the National African Women’s Alliance, AKA Capital, the Food and Allied Workers’ Union, Prime Portfolio Investment and Hoyohoyo. Reflecting on the ownership changes, Otto said Stella Group’s acquisition of Protea two years ago had provided the company with lots of opportunities because of Stella’s global reach. “However, the worldwide financial crisis has taken its toll on all of us to a greater or lesser extent. Both parties agreed very amicably to each look after our own interests and ours is Africa.” He said Stella had been “extremely satisfied” with Protea’s performance, which in 2008 had been “way ahead of forecast and budget”. “It’s great to have all the shares back on South African shores,” commented Arthur Gillis, group md of Protea Hotels. “With the expertise of the existing management team in place we will carry on expanding our footprint across the continent and continue to deliver exceptional hospitality and growth.” Otto said Protea would be opening four more hotels in South Africa this year and two more next year. It was also opening three more hotels in Nigeria before the end of the year and was looking at opportunities in Angola, Botswana and the DRC.