Hospitality

Hotel Leela jumps on stake sale report

MUMBAI

Shares of Bombay Stock Exchange-listed Hotel Leelaventure today reported its biggest jump in a in almost five years after news broke out that the company might sell controlling stakes in two properties to pare debt.

The Mumbai-based company’s shares closed 16.8% higher on the BSE at Rs 21.20 compared to its previous close after hitting a high of Rs 21.75 during the day. The company is reportedly in talks to hive off Delhi and Chennai properties and sell stake in it to raise nearly Rs 2,000 crore.

According to PTI, the company is in talks with sovereign wealth funds of Abu Dhabi, Qatar and Malaysia to sell the two properties for Rs 1,850 crore to reduce the debt burden. While the foreign investor may pick up 74% interest in the hived-off entities, Leelaventure will retain 26% stake and continue to manage the five-star hotels, the deal is however not yet finalised, industry sources said.

Full report here Business Standard

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