Reliance Acquires 14.12% Stake In Oberoi Hotels
Reliance Industries, through its wholly owned subsidiary Reliance Industries Investment and Holding Private Limited has acquired 14.12% stake in EIH Ltd, that runs the 'Oberoi' brand of hotels and resorts, for Rs.1,021 crore.
It has acquired the stake from Oberoi Hotels Private Limited and certain other promoters of EIH Limited.
This is a strategic investment by RIL and through this deal, it enters into the hospitality segment.
There is no change of management, operation or control of EIH Ltd.
Transaction Reference: BSE
East India Hotels (EIH) Ltd owns and manages major hotels like The Oberoi-Mumbai, The Oberoi-New Delhi, The Oberoi-Bangalore, The Oberoi Grand-Kolkata, Trident-Mumbai and The Oberoi Udaivilas-Udaipur.
It also owns and manages other business units like Motor Vessel Vrinda; Cochin (a luxury crusier); Oberoi Flight Services; Maidens Hotel, Delhi; Oberoi Aircraft services and Business aircraft charters and kuxury car hire.
EIH Ltd posted a revenue of Rs. 907.27 crore for FY09-10 wit a PAT of Rs.57.23 crore.
EIH is planning to invest Rs.150 crore over the next two years on new projects. It is looking at locations like London, Paris, New York, Shanghai, Beijing and Bangkok, mostly for management control of existing and upcoming properties. The hotel chain manages 32 properties globally.
This year in June, EIH International Limited, a wholly owned subsidiary of EIH Limited completed the acquisiton of the 45.85% stake of Amex Investment Limited in its international hotels joint venture company EIH Holdings Private Limited for $45 million.
Earlier this year, ITC Ltd had increased its stake to 14.98% in EIH Ltd triggering speculation that the FMCG-to-hospitality conglomerate could go for an open offer once it crosses the 15%.
The Promoter and Promoter Group of EIH had a shareholding of 46.43% prior to the deal.
In the hotels space, Asian Hotels (West) is set to acquire a majority stake in Inovoa Hotels and Resorts. The deal is expected to be completed in a couple of months.
Recently,Mirah Group bought 'Rajdhani Thali' which is run by Encore Hotels Pvt Ltd.
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KVEZAR VIEW
| Date | Transaction | Type | Buyer | Size ($mn) |
|---|---|---|---|---|
| 01/03/11 | EIH Ltd - Elephant Capital | Private Equity | Elephant Capital | 2.70 |
| 02/09/10 | EIH Ltd - Reliance Industries (Additional Stake) | M&A | Reliance Industries Limited | - |
| 30/08/10 | EIH Ltd - Reliance Industries | M&A | Reliance Industries Investment and Holding Private Limited | 217.50 |
| 07/05/10 | EIH Limited - Analjit Singh | M&A | Analjit Singh | - |
| 01/12/08 | EIH Ltd. - Elephant Capital Exit | Private Equity | 2.77 | |
| 31/07/07 | EIH Ltd. - Elephant Capital | Private Equity | Elephant Capital | 9.77 |
| Date | Type | Buyer | Target | Size ($mn) | State |
|---|---|---|---|---|---|
| 01/02/12 | Private Equity | CGH Earth | 50.49 | Planned | |
| 30/01/12 | IPO / Offerings | Pride Hotels Limited | 25.30 | Called Off | |
| 30/01/12 | M&A | Sahara Group | Marriott Hotels Inc | 1175.47 | Planned |
| 27/01/12 | M&A | Omega TC Holdings Pte Limited | Roots Corporation Limited (Ginger Hotels) | - | Completed |
Company |
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| Name | Promoters | Office | Competitor | Website |
|---|---|---|---|---|
| EIH Limited | Oberoi Hotels Private Limited Oberoi Investments Private Limited Oberoi Holdings Private Limited |
4 Mangoe Lane, Kolkata-700001. |
Royal Orchid Hotels Limited Hotel Leelaventure Limited Sinclairs Hotels Limited |
www.eihlimited.com |
| Oberoi Hotels Private Limited | Rai Bahadur M S Oberoi | Oberoi Hotels & Resorts,7, Sham Nath Marg, Delhi-110054, India | Kamat Hotels India Limited | www.oberoihotels.com |
| Reliance Industries Investment and Holding Private Limited | ||||
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