Millitoons Entertainment has marked its entry into the Hospitality Industry in a big way and has entered into an agreement to acquire 9 companies which own well-established hotels in the United States for a total cost of $73.25 million equivalent to approximately Rs 491 crore which shall be financed by debt continuation in the books of the respective companies with US banking institutions to the tune of $61.25 million equivalent to approximately Rs 410 crore and balance i.e. $12 million equivalent to approximately Rs 81 crore shall be paid by the company to acquire 100% stake in the said companies. The effective cash outflow for Millitoons shall be $12 million equivalent to approximately Rs 81 crore for acquiring all the target companies.
The hotels run by these companies are under management contract with established international brands such as Holiday Inn, etc. Of the above, a company is in the process of renovating the property and signing management contract with Sheraton Plus and another one with Best Western.
The said transaction shall be closed in various stages ranging from 2 to 12 months after completion of due diligence/ obtaining required statutory approvals and completing the financial closure by Millitoons to meet its obligations.
| Company Name | CMP |
|---|---|
| Zee Entertainment | 92.05 |
| Sun TV Network | 567.20 |
| GTPL Hathway | 68.01 |
| Network 18 Media Inv | 33.93 |
| TV Today Network | 121.65 |
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