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NEWS | Reliance Industries investment arm buys stake in East India Hotels

An investment subsidiary of Reliance Industries has purchased the stakes held by two investment companies owned by Analjit Singh, the Promoter of Max India, in East India Hotels, enabling Reliance Industries to overtake ITC as the largest minority shareholder in the premier hotel chain. In September 2010, RIL, controlled by Mukesh Ambani, bought 14.8 per cent in a friendly transaction.
The investment subsidiary Reliance Industries Investment and Holdings increased its stake in the hotel chain from 14.80 per cent to 18.52 per cent by way of two transactions, according to an Economic Times report. ITC, which has asserted that its investment is financial, continues to hold 14.98 per cent. Both investors — ITC and RIL - till recently were careful to keep their stakes below 15 per cent, because of the takeover code. The new takeover code has enabled RIL to increase its stake above 15 per cent, as the trigger for an open offer is now at 25 per cent from the earlier level of 15 per cent.

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