Hotel Leelaventure Limited (“HLVL”), has announced that (subject to regulatory approvals and specific conditions being met) it has entered into a Business Transfer Agreement (“BTA”) to sell The Leela Goa (“Goa Hotel”) to MetTube Sdn. Bhd., Malaysia (“MetTube”).
Ceres Hotels Private Limited (“Ceres”), a wholly owned Indian subsidiary of MetTube, agreed to acquire the Goa Hotel for a total consideration of Rs. 725 crores. The Goa Hotel would be transferred to Ceres by way of a slump sale under the BTA subject to satisfaction of certain conditions precedent, including regulatory approvals.
Pursuant to a Hotel Management Agreement, HLVL shall manage and operate the Goa Hotel and the hotel shall continue to be known as the “The Leela Goa.”
As one of India’s premier luxury properties, The Leela Goa blends local culture with the region’s Portuguese heritage. The 206-room Leela Goa is spread across lush 50 acres with direct access to the pristine Mobor beach. The resort has the advantage of being on the banks of river Sal at the far-side of the property. With facilities including its premier spa, 12-hole golf course, private beach and several award-winning restaurants, The Leela Goa promises its guests an indulgent and relaxing stay. It is the property’s unique location, world-class facilities and outstanding service that consistently make it one of the finest hotels in India today.
Commenting on the transaction, Mr. Vivek Nair, Chairman and Managing Director of HLVL, said: “The disinvestment of the Goa Hotel and retaining the management of the hotel under the Leela brand is in line with our strategy to restructure our debt, follow an asset light strategy and manage more hotels.”
Upon signing the BTA, Mr. Raghav Mittal, President and Chief Executive Officer of MetTube, remarked: “This investment signifies the group’s confidence in building and growing businesses in India. As a group we are very proud to have been able to diversify our business lines and make a useful contribution to the Indian economy.”
JM Financial Institutional Securities Limited acted as the sole financial advisor and Cyril Amarchand Mangaldas acted as the sole legal advisor to HLVL.
Ernst & Young acted as the sole financial advisor, Khaitan & Co. acted as the domestic legal advisor and Wong & Partners (the member firm of Baker & McKenzie International) advised on Malaysian law to MetTube.
