KOLKATA: ITCNSE 0.21 % has said it has not made any offer to acquire the assets of Hotel Leela venture, putting to rest speculation that it is keen to acquire the assets at a lower cost being a competitor, and which is why it has thrown a spanner in the Brookfield deal.
It will be communicated to the NCLT which will hear the Leela venture case on June 18, two senior industry executives said. The Securities and Exchange Board of India (Sebi) had in April stalled Brookfield’s takeover of ..
ITC had also challenged the transaction in NCLT, claiming mismanagement and oppression of minority shareholders by the way the deal was structured.
ITC will, instead, press for proper return on investment for the minority shareholders. The deal, it feels, is structured in such a way that Leela venture will become a shell entity with just one disputed property in Mumbai, deriding the value of minority shareholders, the executives said. Even the company will lose the right to use Leela brand name as it has communicated to the bourses, they said.
“The matter is sub-judice, and hence, we will not be able to comment,” an ITC spokesperso ..
JM Financial, the parent of JM Financial Asset Reconstruction Company that holds 26% in Leela venture after conversion of debt into equity, had acted as the exclusive financial advisor for the deal.
Leela venture, which has a debt of around Rs 7,500 crore, announced in March that Canadian alternative asset management company Brookfield had agreed to buy its key properties in New Delhi, Bengaluru, Udaipur and Chennai for Rs 3,950 crore in a slump sale. The promoters and their affiliates ..
It will be communicated to the NCLT which will hear the Leela venture case on June 18, two senior industry executives said. The Securities and Exchange Board of India (Sebi) had in April stalled Brookfield’s takeover of ..
ITC had also challenged the transaction in NCLT, claiming mismanagement and oppression of minority shareholders by the way the deal was structured.
ITC will, instead, press for proper return on investment for the minority shareholders. The deal, it feels, is structured in such a way that Leela venture will become a shell entity with just one disputed property in Mumbai, deriding the value of minority shareholders, the executives said. Even the company will lose the right to use Leela brand name as it has communicated to the bourses, they said.
“The matter is sub-judice, and hence, we will not be able to comment,” an ITC spokesperso ..
JM Financial, the parent of JM Financial Asset Reconstruction Company that holds 26% in Leela venture after conversion of debt into equity, had acted as the exclusive financial advisor for the deal.
Leela venture, which has a debt of around Rs 7,500 crore, announced in March that Canadian alternative asset management company Brookfield had agreed to buy its key properties in New Delhi, Bengaluru, Udaipur and Chennai for Rs 3,950 crore in a slump sale. The promoters and their affiliates ..
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