Country Club India Ltd (CCIL), a BSE-listed entertainment and leisure major, is mulling another acquisition overseas and has zoomed in on a London-based firm.
MUMBAI: Country Club India Ltd (CCIL), a BSE-listed entertainment and leisure major, is mulling another acquisition overseas and has zoomed in on a London-based firm. If it goes through, the acquisition will mark Country Club’s entry into the European market.
In May 2008, the company made its largest acquisition by taking over an existing boutique luxury property in Emirate of Dubai for 165 million dirham (Rs 175 crore). Y Rajeev Reddy, chairman and managing director of County Club, told DNA Money that the target company has already been identified and the process of due diligence is on.
“Once completed, this acquisition will give us a wider footprint in the United Kingdom as the target company already has a good network of properties in Europe. The acquisition will be routed through our wholly-owned overseas subsidiary,” said Reddy.
Without giving further details on the target company, Reddy said that the cost of the acquisition would be $80-100 million. Country Club expects to close the deal, which will be funded through internal accruals, by March 2009 or early next fiscal. Seeing the downturn as a good opportunity for gaining momentum, Reddy said that he is aggressively pursuing the inorganic growth strategy for Country Club. The company is believed to be scouting for properties not only in the domestic market but also overseas.
“Destinations such as Mauritius, Poland, the Far East, etc, are on our radar for international expansion and we are looking out for strategic assets that can be brought into our fold in these markets,” Reddy said.
According to him, the company has invested Rs 350 crore for acquiring 25-odd firms in the last six months.
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