Singapore investor to buy stake in Indian Hotels arm Roots Corporation
16 Mar 2011
Omega TC Holdings Pte Limited, a private company incorporated in Singapore, will invest Rs150 crore in Roots Corporation Limited, a wholly owned unlisted subsidiary of Indian Hotels Ltd.
The investment, which will entitle the Singapore investor to a minor stake in Roots Corporation, will be made in several tranches, Indian Hotels said in a filing with the Bombay Stock Exchange (BSE).
Roots Corporation, a Tata Group company, operates the Ginger chain of budget hotels across India.
The Singapore investor will also acquire compulsorily convertible preference shares (CCPS) from some existing holders thereof, for an aggregate of Rs70 crore.
The CCPS along with the equity shares will give the investor a minority stake (on a fully diluted basis) in Roots Corporation Limited.
In addition, the investor will also have an option to invest a further Rs100 crore in Roots Corporation Limited by March 2014, subject to satisfaction of certain conditions.
The board of directors of the company has approved the execution of a share subscription agreement, a shareholders agreement and other incidental documents, which contain terms customary for such a transaction.
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