The promoters of the erstwhile Asian Hotels have restructured their holdings through bulk deals worth Rs 500 crore in line with their decision to split the hospitality business region-wise. The promoters — Guptas, Jatias and Sarafs — exchanged stakes among themselves through several deals recently to hold around 55 per cent stake each in Asian Hotels (W), Asian Hotels (N) and Asian Hotels (E) respectively.
According to a report in The Economic Times, these three companies have an equity capital of Rs11.4 crore each, post the demerger. A total of 13.2 million shares of these companies were traded at different prices for the combined value of Rs508 crore on the Bombay Stock Exchange.
The series of bulk deals completed the demerger of Asian Hotels, which brought the American hospitality brand Hyatt in India, into three companies — Asian Hotels (North), Asian Hotels (West) and the Asian Hotels (East). Under the split formula, Shiv Jatia will operate the Delhi-based Hyatt Regency, Sushil Gupta will control Hyatt Regency in Mumbai and Umesh Saraf, the Kolkata-based Hyatt Regency. Although the promoters formed three new companies, they felt the need to clear cross holdings as the shareholding patterns of the new firms were mirror image of the original one.
Asian Hotels (North), which owns the group's flagship property in New Delhi, is by far the largest and most profitable in the group. Asian Hotels (north) is planning a qualified institutional placement and will go in for conversion of preference shares soon.
The New Delhi property, which is now with Asian Hotels (North) accounted for 49 per cent of the Group's turnover, while the Mumbai property, now owned by Asian Hotels (West), accounted for 35 per cent and the Kolkata property, now with Asian Hotels (East), contributed 17 per cent to the Group's turnover. Last year, the Group recorded a turnover of Rs 600 crore.
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