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The Indian Hotels Company Ltd (IHCL) has become the proud leasehold owner of the iconic Sea Rock hotel. On Tuesday, the Taj Group’s parent company announced the signing of a binding agreement for the acquisition of the balance 14.28 per cent equity interest in ELEL Hotels and Investments Ltd (ELEL) from the Nanda family.
This will make IHCL the 100 per cent leasehold owner of the landmark Sea Rock hotel site by December 31, 2021.
In its filing to the exchanges, Indian Hotels said, "the Board’s approval for the acquisition of balance stake in ELEL, the Company has today signed a binding agreement for the acquisition of the balance 14.28 per cent equity interest in ELEL from the Nanda family. This will make IHCL 100 per cent leasehold owner of the landmark Sea Rock hotel site by December 31, 2021."
The Sea Rock hotel became defunct after a bomb exploded on the 18th floor of the hotel in 1993. It was razed to the ground the following year. In 2009, it was taken over by IHCL’s subsidiary company.
The hospitality major planned to make it an iconic property similar to Colaba’s Taj Mahal Palace, and merge it with the Taj Lands End, located in the suburb of Bandra, with over 1,000 rooms and a convention centre.
However, multiple glitches stalled the project execution. With this acquisition, IHCL has cleared another roadblock.
Commenting on the signing of the agreement, Puneet Chhatwal, Managing Director and Chief Executive Officer, IHCL said, “The visionary redevelopment of Sea Rock promises to be not only another defining landmark in India’s commercial capital of Mumbai, but also an opportunity to build an iconic sea front hotel in South Asia.”
IHCL’s board of directors on November 11, 2019 approved the terms for the settlement to acquire 14.28 per cent shareholding. The payment will be structured through multiple instalments staggered over a period, with full buyout by December 31, 2021. This settlement will ensure 100 per cent control of shareholding.
Incorporated by the founder of the Tata Group, Jamsetji Tata, the company opened its first hotel - The Taj Mahal Palace - in Bombay in 1903. IHCL has a portfolio of 200 hotels, including 42 under development across four continents, 12 countries and in over 100 locations. The Indian Hotels Company Limited (IHCL) is South Asia’s largest hospitality company by market capitalisation. It is primarily listed on the BSE and NSE.
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