Hotel Leela Venture hits upper circuit after hotel sale plans

This transaction will not lead to any change in the shareholding pattern of the company.

Mar 19, 2019 11:03 IST India Infoline News Service

Hotel Leela Venture
Shares of Hotel Leela Venture are locked in upper circuit of 5% in late morning trade on Tuesday after the company’s board approved the proposal to sell 4 hotels, properties to Brookfield for sum of Rs3,950cr.

Accordingly, the company’s hotel business, together with all assets and liabilities of the hotels located at Bangalore, Chennai, Delhi, and Udaipur will be transferred to Brookfield on a slump sale basis as a going concern. This will also includes the company’s rights in the hotels, and underlying immovable properties, the company said in a press release after the market hours to the exchanges on Monday.

This transaction will not lead to any change in the shareholding pattern of the company, Hotel Leela Venture added.

"The total consideration payable to the company for the transaction is Rs3,950cr subject to adjustments on account of net working capital plus the transaction cost. The agreed amount will be paid to the lenders of the company in accordance with the terms of the definitive agreements towards repayment of dues owed by the company to its lenders," the company said in a statement.

Hotel Leela Venture Ltd's share price is currently at Rs11.63, up by Rs0.55 or 4.96%, from its previous close of Rs11.08 on the BSE.

The scrip opened at Rs11.63 and has touched a high and low of Rs11.63 and Rs11.63, respectively. So far, 1,82,844 (NSE+BSE) shares have been traded on the counter. The current market cap of the company is Rs698.65cr.

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