Financial Daily from THE HINDU group of publications
Friday, Jun 09, 2006
Financial Daily from THE HINDU group of publications Friday, Jun 09, 2006 |
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Corporate
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Restructuring EIH shareholders vote on business recast Our Bureau
MR P.R.S. OBEROI, Chairman, with Mr S.S. Mukherjee, Vice-Chairman and Managing Director, and Mr Arjun Oberoi, Deputy Managing Director, arriving at the court convened extra ordinary general meeting at Oberoi Grand Hotel in Kolkata on Thursday. - A. Roy Chowdhury
Kolkata , June 8 The shareholders of EIH Ltd on Thursday concluded the ballot process for recording their consent to the Scheme of Arrangement between EIH Ltd and EIH Associated Hotels Ltd (EIHAL), and Amalgamation of Rajgarh Palace Hotel and Resorts Ltd with EIH Ltd, at the court-convened meeting. The results of the ballot will be made known after 48 hours. Mr I.P. Mukherjee, Advocate, was appointed to chair the meeting. The EIH board has already approved, in principle, the restructuring of the company by transfer of two of its hotels - The Oberoi Cecil, Shimla and the Trident Hilton, Bhubaneshwar - to EIH Associated Hotels Ltd, Chennai. Lazard India Pvt Ltd has carried out the work as sole financial advisors for business reconstruction. Talking to Business Line here on Thursday, Mr S.S. Mukherji, Managing Director of the company, said the scheme would come into effect retrospectively from April 1, 2005, subject to shareholder okay and subsequent court clearances. A similar EGM of shareholders of EIH Associated Hotels Ltd is being held in Chennai on Saturday. He said the business reconstruction was necessary for better utilisation of the potential existing in the hoteliering business for enabling optimum growth. It is felt that the "business and interests of EIH and EIHAL will be run, controlled and managed more conveniently and advantageously pursuant to the reconstruction."
Stock split
Asked to comment on the strategy behind the EIH stock split at Rs 2 per share, Mr Mukherjee said each company has to look at the particular value it is seeking for its stock in the markets. He, however, conceded that this was subject to normal capital market conditions. The EIH stock on Thursday shed Rs 70 to close at Rs 520 on BSE, against the previous close of Rs 570.
New projects
He said work was on in full swing on the Bandra-Kurla 437-room super deluxe project, a Trident Hotel, estimated to cost Rs 650 crore. The hotel is expected to open by early 2008. He said EIH was also scouting for new projects, both domestic and overseas, besides the ones in Bangalore and Goa, and no firm view had been taken so far.
More Stories on : Restructuring | Hotels
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