The Hindu Business Line : IHC says in talks with Navis Capital for stake in Nirula's

"If IHC decides to buy stake in the restaurant chain, it's going to be 100 per cent, or else none at all. But the management will continue to remain with Navis in that case."

New Delhi June 21 Whether the Delhi-based Nirula's is on the block or not is posing to be a difficult question. While Indian Hospitality Corp (IHC) says it is in talks to acquire the Malaysian private equity Navis Capital Partners owned entity, Nirula's asserts to the contrary.

"Contrary to widespread reports in the media, IHC is not buying into Nirula's. The stakes held by Navis and I remain unaffected and unchanged," said Mr Samir Kuckreja, Managing Director and minority stakeholder in Nirula's.

"Navis Capital Partners are, however, in discussions with IHC, to sell a certain minority stake in Nirula's to fund the chain's expansion plans, while the management will remain with the existing team," said Mr Kuckreja.

"Talks are in the initial stages and a possible decision can be taken in the next six to twelve months. IHC will be seen as strategic investors," he added.

However, Mr Rajeev Talwar, one of the board of directors of IHC and Executive Director of DLF, said, "As per the rules that govern a special purpose acquisition corporation (SPAC) such as IHC, either the corporation buys in 100 per cent stake or doesn't buy in at all.

"The acquisition is compensated to the previous owners in two ways, through the payment of a certain amount and by letting the owner's buy a certain stake in the SPAC itself."

"In the case of Nirula's, we are still in discussion with the board of directors. But the fact is, if IHC decides to buy stake in the restaurant chain, it's going to be 100 per cent, or else none at all. But the management, according to the rules, will continue to remain with Navis in that case," he added.

IHC that is a listed entity in London's Alternate Investment Market (AIM), which earlier raised $103 million through an IPO in London, recently acquired 100 per cent stake in Navis-held Mars Restaurants Pvt Ltd and Sky Gourmet Catering Pvt Ltd, for an estimated $110 million, a 20 per cent stake in the SPAC and also an entry into the corporation's board of directors.

The management of the two acquired entities, however, remain with Navis Capital Partners.

Mars operates two four-star hotels, Gordon House Hotels in India and owns restaurants, including Tendulkar's and All Stir Fry.

Sky Gourmet, the airline catering services, will use the money for its expansion plans.

More Stories on : Hotels | Foreign Institutional Investors

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page