KOLKATA/MUMBAI: ITC is looking to buy hotels, and the scuttlebutt on the street is that it could very well be rival East India Hotels (EIH) owned by the Oberoi Group.
ITC chairman Y C Deveshwar, speaking on the sidelines of a sustainability summit, organised by the CII-ITC Centre for Sustainable Development in Delhi, said, “We are in dialogue. If any player came along with an attractive proposition, ITC would be willing to acquire it…”
The cigarettes, hotels and FMCG major already has a 14.95% stake in EIH, held through its investment arm Russell Credit.
Anil Ambani, through his investment arm Sonata Investments, also has 1.68% stake in EIH. The EIH share has jumped up 25% in the last five sessions from Rs 93.90 to Rs 117.15.
Market sources said ITC has been negotiating for off-market block deals in EIH stock.
However, DNA Money could not confirm this with ITC officials. Early this week, Pivet Finance, an investment company owned by Delhi-based Max Group honcho Analjit Singh, picked up 36 lakh shares of EIH, tantamount to a 1% stake, for about Rs 45 crore.
In a statement, Pivet said it is investing and not warehousing the stock for anyone.
Talking to CNBC TV18, Oberoi Group chairman P R S Oberoi said the promoters are seeking to increase their stake in EIH to over 50%.
Earlier in August, he had said EIH was in talks with several investors. Interestingly, average delivery trades in EIH share on the bourses have tapered to 35% in December from 55% levels in November. ITC has reserves of Rs 11,680 crore.
