Shares of Hotel Leela nosedived 10% intraday on Friday after doubling in the current week on the news that a consortium comprising Thailand’s Minor International (Minor) and Trinity White City Ventures plans to invest about Rs2,500cr (or $350mn) in Hotel Leela Venture, as per media sources.
The stock had zoomed 73% in past three trading days from Rs8.85 on November 22, 2018. The stock has been in the news this week due to the deal. Read more.
In the past one year, Minor has aggressively bid for marquee properties across the globe, and its proposed acquisition of Leela will reportedly be funded by a mix of equity and debt.
“Minor is always on the lookout for good investment opportunities, which includes Hotel Leela Venture. But nothing is set in stone. We are currently exploring the option,” Dillip Rajakarier, CEO of Minor’s hotel unit, told The Wire. Minor has been expanding through acquisitions, spending $2.6bn in current calendar year to take control of Spanish chain NH Hotel Group.
As per the company’s latest annual report, Hotel Leela Venture runs a chain of hotels and resorts, with nine properties, across India. A spokeswoman for Hotel Leela Venture told The Wire, “Right now there is nothing to share. We will make an official announcement once everything in finalised and we move towards a decision.”
Hotel Leela Venture Ltd is currently trading at Rs16.27 down by Rs1.8 or 9.96% from its previous closing of Rs18.07 on the BSE.
The scrip opened at Rs18.62 and has touched a high and low of Rs18.78 and Rs16.27 respectively.