At the Meeting of the Board of Directors held on 11th February, 2016 the Board has approved the following :
i.) Acquisition of Shares
Acquisition of a further 17,00,000 Equity Shares of Rs.10 each of Maple Hotels & Resorts Limited (`Maple’), an Associate Company (a Related Party) in which the Company already holds 30,00,000 Equity Shares of Rs.10 each, from an existing unrelated shareholder, for cash, at a price not exceeding Rs.50 per share. The Net Asset Value per share of Maple as available from its latest published accounts is Rs.45.56.
The transaction is at arms length basis and has been approved by the Audit Committee at its Meeting held earlier in the day on 11th February, 2016.
Maple was incorporated on 3rd April, 2000 and is involved in the business of hospitality. The Company at present owns three hotels – two in Jaipur, one is a four star contemporary facility whilst the other is a three star deluxe traditional facility and the third being a luxury boutique resort in Bikaner. Maple has plans for further expansion in this line of business. The turnover of Maple for 2012-13, 2013-14 and 2014-15 are Rs.9.51 Crores, Rs.12.27 Crores and Rs.11.52 Crores respectively and for 2015-16 is projected at about Rs.14.00 Crores.
The Company already holds about 27.37% of Maple’s equity capital and the proposed acquisition which is towards consolidation of its holding in Maple, would increase its interest in Maple to 42.87% of its equity capital.
No governmental and regulatory approval is required for the proposed acquisition which is expected to be completed within the current financial year.
ii)
Re-appointment of Mr Vinay K Goenka, Chairman
Reappointment of Mr Vinay K Goenka as Chairman ( wholetime) for three years with effect from 1st April, 2016, subject to requisite approvals.
