Published & Updated as on - 2010-02-19
The 28-year-old partnership that brought the
Hyatt hospitality brand into the country has formally ended with the three key
promoters creating three distinct entities. Sushil Gupta, Shiv Jatia and Umesh
Saraf, who came together to establish the three Hyatt properties under the
umbrella of Asian Hotels Ltd, have got the Delhi High Court’s nod for a
de-merger, thereby splitting the erstwhile company into three separate firms.
The three Hyatt properties in the country will now be operated by three
companies. While Shiv Jatia will run Hyatt Regency in New Delhi, Sushil Gupta
will have control of the Hyatt Regency in Mumbai via Chillwinds Hotels Ltd.
Similarly, Umesh Saraf will operate the Hyatt Regency, Kolkata through Vardhman
Hotels Ltd.
On Wednesday, Asian Hotels announced the
company’s name stands changed to Asian Hotel (North) Ltd. It is understood that
the same will be undertaken for the other two firms involved in the de-merger.
As on October 31 last year, R K Jatia and the Shiv Jatia Group held 26.8 per
cent in Asian Hotels, while Saraf Industries and Forex Finance, representing
the Saraf interests, held 15.16 per cent in the company. The Gupta group held
another 17.25 per cent. “The three groups have been together for almost 30
years. However, each of us have our own interests and want to pursue our own
plans. By undertaking the de-merger, it is a win-win situation for all of us,”
Sushil Gupta told Business Standard.
He added that, despite
the de-merger, there would be cross-holding across the three companies for sometime,
but did not divulge the details of this arrangement. In its filing before the
Delhi High Court, available on the BSE website, Asian Hotels said the three
promoters have independent interests in the hospitality industry, “which may
create potential conflict of interest situations”, leading to an impact on
shareholders’ interests. Therefore, with an eye on minimising conflict of
interest and maximising growth and future prospects, the Kolkata and Mumbai
undertakings should be transferred and vested in Chillwinds Hotels and Vardhman
Hotels respectively, the petition argued.
It is understood
that the three constituent groups were exploring opportunities to establish
properties across geographies, which could have led to some discord. Gupta, for
instance, intends on setting up a hotel in Delhi. Moreover, Magus Estates and
Hotels, part of the Jatia Group, has already opened a Four Seasons property in
Mumbai and is scouting for other locations.
Source: Indian
Realty News 19/2/10
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