Analjit Singh to hike stake in EIH: reports

Max India’s Analjit Singh is reportedly planning to buy stake in EIH and could join the founding Oberoi family as co-promoter and vice-chairman of third-largest hotel chain. A deal is likely to be finalised early next month. Singh owns around 26% in EIH, the operator of the Oberoi and Trident brands and the third-largest hotel chain behind Indian Hotels and ITC. Together, Singh and the Oberoi family will own a 52% stake in EIH. The Oberoi family, which owns 43% in EIH, will sell a little over 17% to Singh for up to Rs12.5bn, the report stated. Along with Singh’s shareholding through purchases in the open market, his stake will rise to 26%. Singh and EIH chairman PRS Oberoi have already signed a non-disclosure pact, and a due diligence for a final deal is currently under way, the newspaper report said. Once a deal is finalised, Singh will make the mandatory open offer for an additional 20% stake at a price expected to be between Rs165 and Rs185 per share.

But Singh, Max India founder, said that he is considering purchasing a stake in hotel operator EIH. "The matter is under deliberation," Singh was quoted as saying. While EIH Chairman PRS Oberoi said that "no decision has been taken." ITC, which owns nearly 14.9% in EIH, is evaluating the situation. A business daily quoted bankers close to ITC as saying that the FMCG giant may raise its holding to 15% and make an open offer for another 20%. LIC, New India Assurance and GIC together own a little over 10% in EIH while Reliance Capital's holding is a shade over 2%.