Mukesh Ambani-led Reliance Industries Ltd. (RIL) on Monday announced that it had acquired 14.12 per cent stake in EIH Ltd. for a total consideration of about Rs.1,021 crore

RIL acquired these shares “through its wholly-owned subsidiary Reliance Industries Investment and Holding Private Ltd. from Oberoi Hotels Private Ltd. and certain other promoters of EIH Ltd.,” RIL said in a press release.

“RIL's investment in EIH has been made as the Oberoi family had developed the ‘Oberoi Hotels' brand into a premier international brand in the luxury hospitality sector and as a result EIH has excellent future prospects,” RIL said. “RIL has full faith in and would support the management of EIH and there is no change of management, operation or control of EIH,” it added.

PTI reports from New Delhi:

Commenting on the stake sell, Oberoi Group Chairman P. R. S. Oberoi said: “RIL desired to make a long-term financial investment in the luxury hospitality industry. We are happy to encourage its investment in EIH. There is no change to control, management or operation of EIH.” The development comes less than two months after Mr. Oberoi ruled out selling promoter stake in EIH. Earlier this year, ITC had increased its stake to 14.98 per cent in EIH, triggering speculation that the FMCG-to-hospitality conglomerate could go for an open offer once it crosses the 15-per cent mark. “We have 46.4 per cent (in EIH) and there is no plan to sell any stake,” Mr. Oberoi had said in July. Asked about ITC increasing stake in EIH through open market purchases, he said: “If somebody wants, we cannot stop people buying from the stock market.”

Keywords: RILEIHOberoiITC

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