RIL Gets Hold Of 14.12% Stake In EIH Ltd
Reliance Industries Ltd (RIL) has made announcement that it has purchased 14.12% equity stake in hotel chain Eastern Indian Hotels (EIH) Ltd for Rs 1,021 crore.
RIL got hold of equity stake through its wholly owned arm, Reliance Industries Investment and Holding Private Ltd.
According to company's declaration, ''RIL has acquired, through its wholly owned subsidiary Reliance Industries Investment and Holding Private Ltd, from Oberoi Hotels Private Ltd and certain other promoters of EIH Ltd shares in EIH Ltd representing 14.12 per cent of EIH Ltd at a total cost of about Rs 1,021 crore.''
RIL's arm purchased 55.4 milion shares of EIH Ltd at a price of R184 per share, a premium of 36% over Friday's closure at R135.2.
The reports also said that RIL made this investment as the Oberoi family built up the 'Oberoi Hotels' trademark into a premier global brand in the luxury hospitality segment and accordingly, EIH Ltd has great chances to go up.
Reliance Industries Ltd has complete faith in and would back up EIH Ltd management and there will be no modification in the company's management, operation or control.
Mukesh Ambani's investment into the multinational hotel group marks the second significant investment this year outside of his traditional hold in oil, energy and petrochemicals.
In June 2009, RIL bought majority equity stake of 95% in Infotel Broadband, which bagged a countrywide licence in India's broadband wireless spectrum auctions for R4,800 crore.