Royal Orchid Hotels to acquire balance 50% stake in Cosmos Premises

A Postal Ballot would be done by the Company to seek member's approval for the transactions.

Aug 23, 2021 11:08 IST India Infoline News Service

Royal Orchid Hotels Limited ("ROHL") have entered into a Memorandum of Understanding with Vascon Engineers Limited R. Vasudevan HUF (Promoter of VEL) and Conamore Resorts Private Limited (Related Party of Promoter of VEL) to acquire the remaining 50% stake in Cosmos Premises Pvt Ltd. in lieu of 100% stake in Rivershore Developers Pvt Ltd ( "RSDPL") and settling of liabilities in the books of RSDPL on August 21, 2021.

Pursuant to the aforesaid MOU from the total proceeds of Rs52.50cr received from sale of RSDPL, all the liabilities of RSDPL shall be paid and the balance amount shall be the share price.

Since for the purchase of the remaining stake of Cosmos Premises Pvt Ltd the aforesaid amount of Rs52.50cr would be required to be re-paid to Vascon Group, there will be shortfall for the same.

Hence it is proposed that ROHL would re-borrow the amount of Rs10.06cr from Baljees Hotels and Real Estates Private Limited ("BHPL") which BHPL would receive from RSDPL.

A Postal Ballot would be done by the Company to seek member's approval for the aforesaid transactions. 

At around 12:00 PM, Royal Orchid Hotels was trading at Rs69.65 apiece down by Rs1.1 or 1.55% on Sensex.

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