Hospitality major Indian Hotels Company on Tuesday said it has inked pact to acquire the remaining 14.28% stake in ELEL Hotels and Investment from the Nanda family.
The deal will make the company a 100% leasehold owner of the Sea Rock hotel site in Mumbai by the end of December, 2021.
ELEL Hotels, a subsidiary of IHCL, holds the long-term land lease for Sea Rock.
The company has signed a binding agreement for the acquisition of the balance 14.28% equity interest in ELEL from the Nanda family, Indian Hotels Company Ltd (IHCL) said in a filing to BSE.
This will make IHCL 100% leasehold owner of the landmark Sea Rock hotel site by December 31, 2021 it added.
“The visionary redevelopment of Sea Rock promises to be not only another defining landmark in India’s commercial capital of Mumbai but also an opportunity to build an iconic sea front hotel in South Asia,” IHCL MD and CEO Puneet Chhatwal said.
IHCL’s board of directors on November 11, 2019 approved the terms for the settlement to acquire 14.28% shareholding, the company said in a statement.
“The payment will be structured through multiple instalments staggered over a period, with full buyout by December 31, 2021. This settlement will ensure 100% control of shareholding,” it added.
Shares of indian Hotels Company Ltd closed at Rs 80.30 per scrip on BSE, down 1.65% from its previous close.
