At the Meeting of the Board of Directors held on 18th March, 2016 the Board has approved the acquisition of a further 18,00,000 Equity Shares of Rs.10 each at a price not exceeding Rs.47 per share of Maple Hotels & Resorts Limited (`Maple’), an Associate Company (a Related Party) in which the Company already holds 47,00,000 Equity Shares of Rs.10 each. 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 18th March, 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 a four star contemporary facility and one 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. Earlier in the month , upon completion of procedural requirements under the Companies Act, DPIL Limited (‘DPIL’) stood amalgamated with Maple with retrospective effect from 1st April, 2014. The turnover of Maple for 2012-13, 2013-14 and 2014-15 ( post amalgamation of DPIL with Maple) are Rs.9.51 Crores, Rs.12.27 Crores and Rs.11.54 Crores respectively and for 2015-16 is projected at about Rs.14.00 Crores. The Company already holds about 46.87% of Maple’s present equity capital and the proposed acquisition, which is towards consolidation of its holding in Maple, would increase its interest to 46.92% of Maple’s expanded equity capital.
No governmental and regulatory approval is required for the proposed acquisition which is expected to be completed within the current financial year .
