India Digest: Emirati tycoon eyes Leela hotels; Kotak, Karvy Data bid for Ricoh

The Leela Palace, New Delhi

Emirati business tycoon Rashid Al-Habtoor has offered to acquire Leela Hotels, while Kotak Investment Advisors and Karvy Data Management Services have submitted bids for debt-laden Ricoh India.

Emirati tycoon offers to acquire Leela hotels

Emirati business tycoon Rashid Al-Habtoor has reportedly offered to acquire India’s Leela Group of Hotels with an equity infusion of about $600 million.

Al-Habtoor has made an offer in a letter to Finance Minister Arun Jaitley and the hotel, saying he would make the investment in Hotel Leelaventure Ltd through the Foreign Direct Investment (FDI) route, according to an IANS report.

The billionaire has also offered to pay the entire debt of the lender institutions as well as Asset Reconstruction Company. The debt is estimated to be around $600 million including the open offer to the public for acquisition of their shares as SEBI norms.

“We understand that time is an essence and the entire transaction has to be completed by March 31. We are therefore conducting a macro due diligence of the company,” per a letter dated Jan 15, 2019.

It was reported last year that Canada’s Brookfield Asset Management was close to buying at least four of five luxury hotels and a large land parcel owned by debt-ridden Hotel Leelaventure Ltd for about Rs 4,500 crore.

Kotak Investment, Karvy Data bid for Ricoh India

Kotak Investment Advisors and Karvy Data Management Services have evinced interest to acquire debt-laden Ricoh India, a subsidiary of the Japanese multinational technology company.

According to a source-based report in The Economic Times, the two suitors submitted their bids to the committee of creditors led by Deutsche Bank, which will choose the new owner of the company. Ricoh India has dues amounting to almost Rs 3,000 crore.

The sources cited in the news report said that lenders, excluding related parties Ricoh Japan and Ricoh Asia Pacific, may have to take a 5-10 per cent haircut on their loans. Ricoh India owed the two related parties over Rs 1,500 crore.

Also Read:

Brookfield close to acquiring India’s Leela hotels for $627m

Trinity White City-backed suitor plans overseas expansion for India’s Leela