Billionaire Mukesh Ambani-led Reliance Industries (RIL) late on January 8 said it had entered a pact to acquire New York-based premium luxury hotel the Mandarin Oriental.
The move is a part of RIL’s strategy to expand its consumer and hospitality footprint. The group has investments in EIH (Oberoi Hotels) and has acquired the 300-acre Stoke Park country club in Buckinghamshire. RIL is also developing a convention centre, hotel and managed residences in the Bandra-Kurla Complex in Mumbai.
“The closing of the transaction is anticipated to occur by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions. In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL (Reliance Industrial Investments and Holdings) would acquire the remaining 26.63 percent, based on the same valuation used for the acquisition of the indirect 73.37 percent stake,” RIL said.
Here are seven things you need to know about the acquisition:
- RIL’s arm Reliance Industrial Investments and Holdings (RIIHL) has entered into an agreement to acquire the entire issued share capital of Columbus Centre Corporation (Cayman), the indirect owner of a 73.37 percent stake in Mandarin Oriental New York.
- Columbus Centre Corporation (Cayman) is a company incorporated in the Cayman Islands.
- The pact to acquire New York-based premium luxury hotel the Mandarin Oriental is for an equity consideration of around $98.15 million.
- Mandarin Oriental New York is located at 80 Columbus Circle, adjacent to the Central Park and Columbus Circle. It had revenues of $115 million in 2018, $113 million in 2019 and $15 million in 2020.
- The hotel that was set up in 2003 has global recognition and has won several influential awards, RIL said in a statement.
- RIL said the transaction was expected to be completed by the end of March, subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions.
- The statement added that in the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63 percent share, based on the same valuation used for the acquisition of the indirect 73.37 percent stake.
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