Hotel Leela Venture doubles on talk of Thailand co stake deal – Moneycontrol.com

hotel-leela-venture-doubles-on-talk-of-thailand-co-stake-deal-moneycontrol-com Hotel Leela Venture doubles on talk of Thailand co stake deal - Moneycontrol.com

Hotel Leela Venture[1] stock continued its run for fourth consecutive session on Thursday after a media report last week indicated that Thailand company is eyeing major stake in the hotel chain.

The stock was quoting at Rs 17.25, up Rs 1.97, or 12.89 percent at 13:38 hours IST. It rallied 107 percent in four consecutive sessions, though the company said it had still been evaluating various offers and not reached to any conclusion.

A consortium including Thailand’s Minor International and Trinity White City Ventures plans to invest about Rs 2,500 crore (or $350 million) in Hotel Leela Venture, sources told Bloomberg last week.

The proposed bid includes a mix of equity and debt, the report said, adding that if the deal goes through, the consortium would end up acquiring a majority stake in the Mumbai-based hospitality firm.

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Hotel Leela Venture runs a chain of hotels and resorts, with nine properties, across India, its FY18 annual report stated.

But the company has not confirmed yet, saying in its clarification note to exchanges that lenders and itself are still evaluating various offers, so as to achieve maximisation of value for all the stakeholders.

“There is no binding contract with any investor as on date either for investment in the company or for purchase of company’s assets,” it said.

Meanwhile, other hotel stocks were also in limelight with Kamat Hotels (India) rising over 11 percent followed by Taj GVK Hotels & Resorts, Oriental Hotels and Indian Hotels Company which gained 2-5 percent.

References

  1. ^ Hotel Leela Venture (www.moneycontrol.com)

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