Reliance acquires 14% stake in Oberoi Hotels
By Our Hospitality Bureau
August 31, 2010
A wholly owned
subsidiary of Mukesh Ambani – owned Reliance Industries Ltd
(RIL) has bought 14.12 per cent stake for an estimated
Rs1,021-crore in EIH Ltd, promoter of the Oberoi chain of
hotels.
RIL would support the management of EIH Ltd and there is no change
of management, operation or control of EIH Ltd.
RIL's investment makes it the second investor in the hospitality
company holding a tad below 15 per cent while ITC holds 14.98 per
cent in EIH.
Oberoi Hotels Pvt Ltd, Aravali Polymers LLP and Prithvi Raj Singh
Oberoi sold 5.5 crore shares, representing approximately 14.12 per
cent of the share capital to Reliance Industries Investment and
Holding Pvt Ltd.
With Reliance as an investor, EIH has ruled out an acquisition
threat from ITC, which was acquiring shares through creeping
acquisition route.