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Viceroy Hotels Ltd is in the process of securing shareholder nod, through a postal ballot, for selling its Chennai Property Division to Ceebros Hotels Private Ltd for Rs 480 crore.
This sale is aimed at bringing down debt, according to P. Prabhakar Reddy, Chairman and MD of Viceroy. To be concluded by June-end, the sale will help retire Rs 430 crore debt of Chennai property and bring down the overall company debt to Rs 200 crore.
The company plans to consolidate its business in Hyderabad and Bangalore (where it has 40 per cent stake), as also other projects while focusing on budget hotels.
The Chennai Property Division includes a hotel property and a residential project, valued at Rs 480 crore and Rs 20 crore, respectively.
Viceroy had in 2011 got the nod of its members to sell the Division. The hotel project was to be sold to Mahal Hotel Pvt Ltd and the home project to Esteem Housing Developers Pvt Ltd.
But the deals could not be put through due to changes in the Coastal Regulation Zone norms and the rules relating to Chennai Metropolitan Development Authority, Prabhaakr Reddy explained.
Now, Viceroy expects shareholder by June 17 and will close the deal thereafter.
Viceroy shares closed at Rs 19.80 on Thursday, down 3.41 per cent, on the BSE.
rishikumar.vundi@thehindu.co.in
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