The Hindu Business Line : Tatas get fresh dividend payout from Orient-Express

NEW YORK: Indian conglomerate Tata group's Indian Hotels on Thursday received a fresh dividend payout worth over Rs 50 lakh for its 11.5 per cent stake in luxury hotel chain Orient-Express (OEH), even as a status quo has prevailed over its business allia nce proposal for months now.

The Board of Directors of Orient-Express Hotels Ltd today declared a quarterly cash dividend of 0.025 per share on the Company's Class A common shares. The dividend would be payable on August 4 to shareholders of record as on July 18, 2008.

Indian Hotels, which holds a 11.5 per cent stake in OEH, is estimated to get 122,019 dollars (about Rs 53 lakh) as its share in the dividend payout. This is the fourth dividend payout to the Tata group company, taking the total to close to Rs two crore.

Besides the dividend payout, the current holding of Indian Hotels in OEH is currently estimated to be worth about 270 million dollars (over Rs 1,100 crore).

OEH has announced four cash dividend of 0.025 dollars per share each since October last year - first on October 5, 2007, then on January 4 and the last in April this year.

In December last year, Indian Hotels had disclosed having raised its stake from 10 per cent to 11.5 per cent in OEH through open market purchases between September 17 and December 7.

While the 10 per cent stake had cost Tatas $211.3 million, further 1.5 per cent equity was acquired for $35.7 million.

While disclosing its 11.5 per cent holding, Tatas also made an alliance offer to OEH, which was rejected vehemently by the management of the luxury hotel chain. - PTI

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