EIH,East India Hotels,EIH for Rs 1021 crore,EIH Historic Price Charts For NSE / BSE & RIL Buys 14.12 PC In EIH For Rs 1,021 Crore,RIL acquires 14.12% in EIH for Rs 1021 crore:
Reliance Industries has forayed into hospitality sector today. Through its wholly owned subsidiary Reliance Industries Investment and Holding Private Limited, it has acquired 14.12% in EIH for a total cost of Rs 1021 crore, reports CNBC-TV18.
“RIL’s subsidiary bought shares from Oberoi Hotels Private Limited and certain other promoters of EIH Limited,” says an official statement. It further says, “RIL has full faith in and would support the management of EIH and there is no change of management, operation or control of EIH.”
However, post-stake sale, there will be no change of management, operation or control of EIH Limited as per the RIL statement.
The stake buy works out to Rs 184 per share while the stock ended today at Rs 150 per share on the BSE.
Earlier, Analajit Singh of Max India, who also holds under 5% stake in EIH, was interested in hiking stake his share. However, talks failed over differences in valuations.
When contacted, ITC, which holds 14.98% stake in EIH, declined to comment on the deal. However, it reiterated that it will not make a hostile bid for EIH.
Source from:dttvb.com
I have been saying this for a long time now : Oberoi's run awesome hotels, but unfortunately a lot of them dont make money.
ReplyDeletemost of the vilas properties are run in the red and the sheer project cost of these hotels makes them very very difficult to digest. you need someone with deep deep pockets.
Mukesh Ambani is just the man.
here is what i think will happen:
1. expect management changes within 6 months - 1 yr (especially the project & finance areas)
2. expect an open offer within 1 - 2 yrs
3. expect rapid expansion
4. expect brand change within 3 yrs
I dont think this is purely an investment from Reliance. I would like to think that it would be similar to Four Seasons or Aman (in both cases the original owners retained 3-4% ownership in the company and no brand changes were made), but I dont think so.
Mr. Oberoi will be around. The family (along with Mr. Analjit Singh) might own 10% or so eventually, but sooner than later you will see the Reliance stamp all over the company.