Reliance Industries has forayed into hospitality sector today. Through its wholly owned subsidiary Reliance Industries Investment and Holding Private Limited, it has acquired 14.12% in EIH for a total cost of Rs 1021 crore, reports CNBC-TV18.“RIL’s subsidiary bought shares from Oberoi Hotels Private Limited and certain other promoters of EIH Limited,” says an official statement. It further says, "RIL has full faith in and would support the management of EIH and there is no change of management, operation or control of EIH.”
However, post-stake sale, there will be no change of management, operation or control of EIH Limited as per the RIL statement.
The stake buy works out to Rs 184 per share while the stock ended today at Rs 150 per share on the BSE.
Earlier, Analajit Singh of Max India, who also holds under 5% stake in EIH, was interested in hiking stake his share. However, talks failed over differences in valuations.
When contacted, ITC, which holds 14.98% stake in EIH, declined to comment on the deal. However, it reiterated that it will not make a hostile bid for EIH.
