KOLKATA: The recent trifurcation initiative from Asian Hotels was prompted by lack of growth, it is learnt.
The company, which has been in the hospitality business for the past 25 years, has only three operational properties across Mumbai, Delhi and Kolkata.
According to sources, the promoters have independent interests that they are keen to pursue separately but such an approach was hampering the overall growth of the company. In comparison, several hospitality groups have moved ahead with major expansion plans within a much shorter time span, argued sources.
The Asian Hotels board, at a recent meeting, approved the demerger of the company that will result in the trifurcation and formation of two new companies - Vardhman Hotels Pvt Ltd and Chillwinds Hotels Pvt Ltd. Sushil Gupta, MD, west, Asian Hotels, denied that there was any rift among the three promoters: He said: “If there was a rift, we would have been in court.” He said each promoter will own a company that will grow and create value independently.
All the three companies might undergo a name change. The two new companies will also get listed and the board could consider an equal allotment of the issued equity capital in the company and the two resulting companies for the shareholders of the company as of the record date as the determined, pursuant to the scheme of arrangement and demerger.
Meanwhile, Asian Hotels is planning to raise up to Rs 180 crore through non-convertible preference shares. On April 30, the company had proposed to raise Rs 90 crore through redeemable non-convertible preference shares but later suspended the same.
