This story first appeared in DNA Money edition on Thursday, January 26, 2012.
Oriental Hotels Ltd (OHL), a subsidiary of Indian Hotels Co Ltd, has exited its investments in Roots Corporation Ltd (RCL), which owns and manages budget hotels under the Ginger brand.
The Compulsorily Convertible Preference Shares (CCPS) held by OHL were acquired by Singapore-based Omega TC Holdings Pte Ltd.
Anil P Goel, executive director - finance, IHCL, said the CCPS buyout has been converted and the entire deal is over.
“We had some investment from OHL in Ginger hotels so they have exited,” he said without giving details about other entities that exited though the CCPS conversion route. The deal is understood to have concluded sometime in the second half of 2011.
OHL is the Chennai-based associate company of Tata Group promoted Indian Hotels Co Ltd (IHCL) which owns eight hotels operated under Taj, Vivanta and Gateway brands across various south Indian cities.
The OHL deal was a part of Omega’s arrangement with IHCL announced in March 2011, under which the investment firm was to acquire the CCPS held by some existing holders for Rs70 crore.
Under the deal, Omega had also agreed to invest Rs150 crore in tranches for a minority stake, taking its overall investment in RCL to Rs220 crore.
Meanwhile, IHCL has posted a marginal increase in its net profit at Rs50.48 crore for the third quarter ended December as against Rs50.29 crore posted in the same period of the previous fiscal. Net sales rose 7.44% to Rs521.48 crore.
Oriental Hotels Ltd (OHL), a subsidiary of Indian Hotels Co Ltd, has exited its investments in Roots Corporation Ltd (RCL), which owns and manages budget hotels under the Ginger brand.
The Compulsorily Convertible Preference Shares (CCPS) held by OHL were acquired by Singapore-based Omega TC Holdings Pte Ltd.
Anil P Goel, executive director - finance, IHCL, said the CCPS buyout has been converted and the entire deal is over.
“We had some investment from OHL in Ginger hotels so they have exited,” he said without giving details about other entities that exited though the CCPS conversion route. The deal is understood to have concluded sometime in the second half of 2011.
OHL is the Chennai-based associate company of Tata Group promoted Indian Hotels Co Ltd (IHCL) which owns eight hotels operated under Taj, Vivanta and Gateway brands across various south Indian cities.
The OHL deal was a part of Omega’s arrangement with IHCL announced in March 2011, under which the investment firm was to acquire the CCPS held by some existing holders for Rs70 crore.
Under the deal, Omega had also agreed to invest Rs150 crore in tranches for a minority stake, taking its overall investment in RCL to Rs220 crore.
Meanwhile, IHCL has posted a marginal increase in its net profit at Rs50.48 crore for the third quarter ended December as against Rs50.29 crore posted in the same period of the previous fiscal. Net sales rose 7.44% to Rs521.48 crore.
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