EIH Ltd to buy out investment partner stake

Luxury hotelier PRS Oberoi promoted EIH Ltd will buyout its HongKong- based investment partner Amex Investment Ltd’s stake in EIH Holdings British Virgin Islands.


The acquisition will be done through EIH's wholly owned subsidiary (WoS), EIH International Ltd British Virgin Islands wherein Oberoi will acquire Amex's 45.85 per cent equity in its international hotel joint venture company for $45-million.

The proposed transaction is subject to a number of conditions, including mutual agreement of the formal transaction documents and applicable regulatory approvals, EIH management said in an official statement to the Bombay Stock Exchange.


The international JV company has equity investments in Oberoi's existing hotels in Mauritius, Sahl Hasheesh Egypt, Bali and Lombok in Indonesia. The Joint venture is also party to long-term hotel management contracts for the aforesaid hotels in addition to the pure-play management contracts with The Oberoi Zahra and Nile Cruiser in Egypt.

This apart, there are long-term hotel management contracts already in place for new Oberoi hotels (under construction and/or under planning) in Dubai, Marrakech Morocco, Greece and a second hotel in Mauritius.
With the successful conclusion of the proposed acquisition, "All these assets will be entirely owned by EIH Ltd through its subsidiary EIH International Ltd," the filing said.

Acquisition of Amex's equity will also allow EIH Holdings Ltd to now enter into new long-term global licensing agreement with exclusive rights to use the 'Oberoi' and 'Trident' brands throughout the world, where EIH Ltd has been licensed on a similar basis for many years.