Reliance Industries-led subsidiary to acquire stake in Mandarin Oriental New York for $98.15M

10 Jan 2022 , 12:35 PM

Reliance Industries (RIL) wholly-owned subsidiary Reliance Industrial Investments and Holdings Limited (“RIIHL”) entered into an agreement to acquire the entire issued share capital of Columbus Centre Corporation (Cayman), a company incorporated in the Cayman Islands and the indirect owner of a 73.37% stake in Mandarin Oriental New York, one of the premium luxury hotels in New York City for an equity consideration of approximately $98.15M.

As per RIL, this acquisition will add to the consumer and hospitality footprint of the group. The group already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in the UK and is developing a state-of-the-art convention centre, hotel and managed residences in BKC Mumbai.

The transaction is expected to close by end of March 2022. It is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions.

In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63%, based on the same valuation used for the acquisition of the indirect 73.37% stake.

Mayer Brown LLP acted as legal counsel for Reliance on the transaction.

Mandarin Oriental New York, set up in 2003, is an iconic luxury hotel located at 80 Columbus Circle, directly adjacent to the pristine Central Park and Columbus Circle. It has global recognition and has won several influential awards including AAA Five Diamond Hotel, Forbes Five Star Hotel, and Forbes Five Star Spa, among others. It had revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.

At around 12.26 pm, RIL was trading at Rs2427.50 per piece down by 0.4% on Sensex.