Viceroy Hotels Ltd has announced that the company has completed ‘slump sale' of Bangalore Project Division to Viceroy Bangalore Hotels Private Ltd.
Slump sale is one of the methods available to give effect to a transfer of a division or undertaking of a company to another company. All assets and liabilities are transferred for a lump sum consideration to an undertaking.
In a notification to the stock exchanges, the company stated it has invested Rs 47.3 crore in equity share capital of Viceroy Bangalore Hotels Private Ltd by way of subscription of 59,90,000 equity shares of Rs 10 each, at a price of Rs 78.96 a share in accordance with the Business Transfer Agreement.
Viceroy Bangalore Hotels Private Ltd has ceased to be subsidiary of the company on account of strategic investment of Rs 74 crore out of the Rs 90 crore infused by JP Morgan India Property Mauritius II. This was by way of subscription of 74,00,000 equity shares of Rs 10 each at a price of Rs 100 a share.
Further, it has stated that Mr Gunjan Bahl and Mr Hrushikesh Kar were inducted as Directors on the Board of Viceroy Bangalore Hotels Private Ltd to represent JP Morgan India Property Mauritius II.