Last Updated : Jul 11, 2016 07:50 AM IST | Source: Moneycontrol.com

Sahara seeks SC nod for $1.6 bn hotel sale

In its application Sahara informed the Supreme Court that it is in advanced stages of negotiations with Qatar Investment Authority, the Qatar-based sovereign wealth fund, for sale of its three premium hotels. Sahara's three prized jewels include - the Grosvenor House in London and the Dream Downtown and New York Plaza in New York.


Sahara moved the apex court on Friday seeking its blessings for the mammoth hospitality deal featuring sale of Sahara's marquee overseas properties.


CNBC-TV18, was the first to report on the Sahara's deal with the Qatar Investment Authority (QIA).


In its application Sahara informed the Supreme Court that it is in advanced stages of negotiations with Qatar Investment Authority, the Qatar-based sovereign wealth fund, for sale of its three premium hotels. Sahara's three prized jewels include - the Grosvenor House in London and the Dream Downtown and New York Plaza in New York.


Sahara informed the court that the two sides have already concluded the signing of the Letter of Intent (LoI). Sahara also revealed that the after negotiations the consideration agreed upon for the cumulative stake of Sahara in all three properties was USD 1.6 bn. Sahara also assured the Supreme Court that that valuation of USD 1.6 bn was in line with the earlier court direction of not allowing a sale at lower than 5 percent of the value prescribed by the CBRE and JLL report. 


Sources in the know have revealed that after the signing of the LoI, talks between Sahara and QIA progressed at a fast clip. Sources indicated that the laborious exercise of due diligence is near completion and that even the share purchase agreement has been drafted.


Sources have also clarified that upon the grant of SC nod, the deal could be closed within two months. However, of the total sale consideration of USD 1.6 bn, USD 955 million will be payable to the primary lender Reuben Bros, leaving a little shy of USD 650 million in Sahara's kitty.


With Sebi seeking a total of Rs 37,000 crore from Sahara, SC has always urged Sahara to proceed with sale of its three overseas hotels. Sahara, always keen on retaining control of its prized possession, sought exotic refinancing deals with various investors, bankers and brokers with little success.


SC is likely to hear Sahara's latest application on Mon (July 11).

SC is also slated to hear Subrata Roy's bail plea on Mon. Subrata Roy had been dispatched to Tihar Jail in Mar 2014, for non appearance in SC. The SC had prescribed a mammoth, unprecedented bail amount of Rs 10,000 crore. In Tihar, till May 2016, SC released Subrata Roy on parole on account of his mother's death.

First Published on Jul 10, 2016 01:34 pm
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