The Hindu Business Line : Delhi Centaur `due diligence' from April 5

THE divestment of the Air India (AI) subsidiary, Centaur Hotel Delhi, and the Chefair flight kitchens in Delhi and Mumbai, is set to move ahead in the first week of April with the `due diligence' process to begin from April 5.

Official sources told Business Line that the data room is to be made available to those parties from April 5, who deposit the earnest money for the property.

While the identities of the parties which have put in bids is being kept under wraps, the Government decision to divest Delhi Centaur and the Chefair flight kitchens in Mumbai and Delhi received 26 bids, including 16 for the hotel property and 10 for the flight kitchen.

Sources indicated that the Rs 1-crore earnest money for bidding for the hotel and Rs 5-lakh earnest money for bidding for the flight kitchen have been received from the bidders.

While calling for expression of interest for the businesses, the Government had specified that individual party/parties or consortium should have a combined net worth of Rs 25 crore to bid for the Delhi Centaur and Rs 2 crore to bid for Chefair Mumbai.

The documents also states that any change by way of withdrawal or substitution of any member of the consortium or joint venture or any change affecting the composition of consortium or joint venture may be permitted, but only with the specific approval of Air India/Government.

The Centaur hotel chain is part of the Hotel Corporation of India (HCI), which is a 100 per cent subsidiary of AI. HCI used to run five Centaur hotels, including two in Mumbai and one each in Rajgir (Bihar) and Srinagar. While the properties in Mumbai and Rajgir have already been divested, the Srinagar property is likely to be handed over to the State Government.

Meanwhile, even as the divestment process moves ahead, the Delhi hotel has been reporting a high occupancy rate of about 75 per cent during the first three months of the current calendar year.

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