Brookfield Asset Management has acquired some assets owned by Hotel Leelaventure in one of India’s largest hotel deals worth nearly ₹4,000 crore. The deal was announced in March but could not be completed due to objections raised by some investors including ITC. But, in September, the Securities Appellate Tribunal quashed ITC’s appeal against the sale of assets.

“The business has been acquired by Brookfield and the total consideration payable to the company with respect to the transactions set out in the postal ballot notices has been received and paid to the various banks and financial institutions who were the lenders of the company,” Hotel Leela said in a statement.

BusinessLine in March had reported that the debt-laden hospitality firm would sell its assets to Canada-based private equity firm Brookfield Asset Management for ₹3,950 crore. In FY18, the hospitality major had borrowings to the tune of ₹3,800 crore.

The sale included four hotels in Bengaluru, Chennai, Delhi and Udaipur, along with managed properties in Gurugram, Delhi, Goa and Kovalam, land in Agra and the subsidiary, Leela Palace & Resorts. The deal gives Brookfield a 100 per cent shareholding in Leela Palaces and Resorts Ltd, which owns certain properties and holds a licence to develop a hotel in Agra. These account for nearly 80 per cent of Leela’s revenues and 88 per cent of the company’s net worth.

ITC’s objection

ITC, which holds a 7.92 per cent stake in Leelaventure, had moved the National Company Law Tribunal (NCLT) against the latter, alleging “oppression and mismanagement”.

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