Tata Group-backed Indian Hotels Company announced the acquisition of Pamodzi Hotels PLC (presently a listed company in Zambia) for USD 15 million from Tata International Singapore PTE Ltd on July 27.
The Indian Hotels Company Limited or one of its subsidiaries will purchase 100 percent equity of Pamodzi Hotels, which has long-term leasehold rights for Taj Pamodzi, Zambia – a luxury hotel, as stated in the hospitality chain's release.
Currently, Tata International Singapore PTE Ltd owns 90 percent equity in Pamodzi Hotels PLC. The completion of the transaction is contingent on Tata International Singapore PTE Ltd acquiring the remaining 10 percent equity in Pamodzi Hotels PLC through a delisting process in Zambia, as mentioned by the company.
Additionally, the hospitality chain will enter into a 20-year lease agreement to operate a hotel in Frankfurt, Germany, with the right to renew the lease twice, each renewal lasting for 5 years. The capital expenditure investment for the renovation of the hotel, up to Euro 5 million, will be made by IHCL or one of its subsidiaries, according to the company's release. IHCL will establish a new wholly owned indirect subsidiary in Germany to facilitate this lease agreement.
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