Tata Group’s Indian Hotels Company Ltd. (IHCL), which runs the Taj Group of hotels, is reviewing its options for the takeover of Orient- Express Hotels.
“The company has been a shareholder of Orient- Express Hotels Ltd, through a wholly owned subsidiary, and currently holds 6.9 per cent of Orient Express’s Class A common shares. On October 18, 2012 the company had formally written to the board of directors of Orient-Express communicating its desire to acquire all outstanding Class A shares and seeking the board’s consent and approval towards the proposal,” IHCL said.
“The proposal was valued at Rs. 1.86 billion, including Orient-Express’ existing outstanding debt. The company received a response from Orient-Express on November 8, 2012 wherein, inter alia, the view of that company’s board was that it would be, in their opinion, a highly disadvantageous time to sell the company. The company is reviewing its options in this regard,” IHCL Managing Director Raymond N Bickson said in the notes accompanying the company’s third quarter results.
IHCL, for nine month ended on December 31, 2012, reported a net loss of Rs 41.08 crore as compared to a net loss of Rs. 21.33 crore in the same period last year.