Hospitality major EIH Ltd today said it will buyout its partner Amex Investment's 45.85 per cent stake in their international joint venture, EIH Holdings British Virgin Islands, for $45.85 million (about Rs 198 crore).
EIH Ltd currently holds hold a 54.15 per cent share in the JV through its subsidiary and pursuant to the deal, EIH Holdings British Virgin Islands will become its wholly-owned subsidiary, the company said in a response to an e-mail query.
The board of the company has approved the acquisition of stake through its wholly-owned subsidiary, EIH International Ltd British Virgin Islands, the company said in a filing to the Bombay Stock Exchange.
"Amex wanted an exit. EIH decided to buy the interest of Amex," Chairman P R S Oberoi of The Oberoi Group said.
A letter of intent was signed with the principal shareholder of Amex for the acquisition, the filing to the BSE said.
"Pursuant to the acquisition all the assets belonging to EIH Holdings British Virgin Islands would be entirely owned by EIH Ltd through its subsidiary EIH International Ltd," the filing added.
EIH Holdings Ltd British Virgin Islands would enter into new a long-term global licensing agreement under which it would have exclusive rights to use the 'Oberoi' and 'Trident' brands worldwide other than in India, where EIH has been licensed in a similar way.
Currently, EIH Holdings Ltd British Virgin Islands do not have a worldwide licence agreements for the two brands. It will gain the license after becoming a wholly owned step down subsidiary of EIH Ltd.
The joint venture currently has business interest in Oberoi hotels in Mauritius, Bali Indonesia, Lombok Indonesia and Sahl Hasheesh Egypt, it said.