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NEWS | IHCL owned Oriental Hotels exits Roots Corporation Ltd

A subsidiary of Indian Hotels Company Ltd. (IHCL), Oriental Hotels Ltd (OHL) has exited its investments in Roots Corporation Ltd (RCL), which owns and manages budget hotels under the Ginger brand. The Compulsorily Convertible Preference Shares (CCPS) held by OHL were acquired by Singapore-based Omega TC Holdings Pvt Ltd. Anil P Goel, executive director - finance, IHCL, said the CCPS buyout has been converted and the entire deal is over.
“We had some investment from OHL in Ginger hotels so they have exited,” he said. The deal is understood to have concluded sometime in the second half of 2011. OHL is the Chennai-based associate company of Tata Group promoted Indian Hotels Co Ltd (IHCL) which owns eight hotels operated under Taj, Vivanta and Gateway brands across various south Indian cities. The OHL deal was a part of Omega’s arrangement with IHCL announced in March 2011, under which the investment firm was to acquire the CCPS held by some existing holders for 70 crore. Under the deal, Omega had also agreed to invest 150 crore in tranches for a minority stake, taking its overall investment in RCL to 220 crore.

Source


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