Oberois ramp up stake in EIH to 46%

The Oberois have increased their holding in East India Hotels (EIH) by 4 per cent to nearly 46 per cent. East India Hotels owns and runs the Oberoi group of hotels.

Sources said Oberoi Hotels, a part of the promoter group, acquired 19,18,321 shares, representing a 3.66 per cent stake, of East India Hotels last Wednesday from a few foreign institutional investors at a premium.

Sources in East India Hotels confirmed the acquisition but refused to divulge the identity of the seller as well as the acquisition price.

The sources said the acquisition was done through block deals at an average price of nearly Rs 450 a share "" a 25 per cent premium over the ruling market rate of Rs 360.

The acquisition gains significance as it helped the promoters to move closer to the majority stake of 51 per cent at a time when the company is perceived to be under a veiled takeover threat.

Fast moving consumer goods major ITC holds a shade below 15 per cent stake in East India Hotels .

Analysts said the promoters might scale up their stake beyond 51 per cent shortly.

There is very little floating stock of the company making it a difficult takeover target.

As on March 31, 2005, the promoters held 42.61 per cent stake while the institutions held 23.72 per cent in the company.