Mumbai: The Indian Hotels scrip slid over 5 percent following the Tata group firm making a $1.86-billion offer to acquire the US-based luxury hotels operator Orient Express.
Indian Hotels, which holds about 7 percent in Orient Express Hotels, termed the all-cash offer as “compelling”.
Reacting to the development, the stock of the company opened on a weak note at 69.90. Then, it tumbled 5.55 percent to touch an intra-day low of 66.30 on the BSE. It, however, regained some lost ground and was quoting at 66.75, down 4.91 percent at 1103 hours on BSE.
A similar movement was witnessed on the NSE as well, where the stock opened at 70.05 and then fell 5.54 percent to an early low of 66.40. It was later trading at 66.80, down 4.98 percent at 1102 hrs.
The all-cash offer of $12.63 per share is at a 40 percent premium to Orient Express’ closing stock price traded on the NYSE on October 17. The offer by Indian Hotels along with Charme II Funds includes the hotels operator’s debt burden.
Once the transaction materialises, the deal would create one of the world’s major portfolios of luxury hotels and resorts. Indian Hotels operates the iconic Taj properties in India and abroad.