In July 2014, MHRIL had acquired 18.8% stake in the European company for 13 million euro with a provision to increase its stake up to 100% over a period of two years. The company subsequently increased its stake in the Finnish company and currently owns 23.3%.
Mahindra Group's hospitality arm Mahindra Holidays and Resorts India (MHRIL) is increasing its stake in the Finnish vacation ownership company Holiday Club Resorts Oy to 88% by acquiring 64.7% stake for 28 million euro (Rs 200 crore). The balance 12% would be held by the existing management of the company.
In July 2014, MHRIL had acquired 18.8% stake in the European company for 13 million euro with a provision to increase its stake up to 100% over a period of two years. The company subsequently increased its stake in the Finnish company and currently owns 23.3%.
So far, only MHRIL chairman Arun Nanda is on this company's board. MHRIL would make the investment through its overseas subsidiaries and the deal is likely to be completed within a three month time frame, subject to customary regulatory approvals in different countries.
MHRIL also plans to invest an additional 10 million euro (around Rs 70 crore) in Holiday Club Resorts Oy in the form of equity or loan to finance the growth of the Finnish firm in near future. By picking up this additional stake, MHRIL's total investment would be in the tune of Rs 325 crore in the Finnish company.
Arun Nanda, chairman, MHRIL, said, "Mahindra Holidays has decided to exercise its option to increase its stake in Holiday Club Resorts, Finland up to 88%, well ahead of the exercise period deadline of 2016." Holiday Club Resorts Oy is a leading vacation ownership company in the Europe with 30 resorts in Finland, Sweden and Spain. With this deal, both MHRIL and Holiday Club Resorts's members would able to access each other inventories.
Kavinder Singh, MD and CEO, Mahindra Holidays, said, "The Finnish company holding the 12% makes a lot of sense. The management has been there for a very long time and we will be continuing with this management as they understand the business, the local nuances." Singh said the operations of this Finnish subsidiary would start reflecting on MHRIL's book from the time the required approvals come in.
MHRIL has won a bid to develop a resort at the Sundarbans in West Bengal. The company has raised some queries of technical nature with the state government and waiting for the clarifications to come in. MHRIL is looking at 75-100 rooms property at the Sundarbans. MHRIL, which operates 45 resorts across India and abroad, is also looking to add 700 more rooms over the next couple of years for an investment of Rs 650-700 crore. The funding would be done through internal accruals.
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}
)
){kind=small}
){kind=small}
)
)
)
)
)
){kind=small}
){kind=small}
){kind=small}
){kind=small}
){kind=small}