Samhi Hotels has received approval for investing the funds of the company in one of its wholly owned subsidiaries, i.e. Ascent Hotels (Target Entity) to the tune of Rs 125 crore by way of subscribing to certain equity shares of Ascent, each having a face value of Rs 10 on rights issue basis.
The Target Entity is raising funds towards repayment of certain inter-corporate loans availed by the Target Entity from the company. Successful consummation of the Proposed Transaction and utilization of such funds for the aforesaid purposes is one of the pre-closing conditions required to be fulfilled by the company and the Target Entity as stipulated under the definitive documents entered by the company and the Target Entity with Reco Bellflower, an affiliate of GIC Pte. for acquiring 35% shareholding in three wholly owned subsidiaries of the company, namely, the Target Entity, SAMHI JV Business Hotels and Innmar Tourism and Hotels.
The said transaction is expected to be completed on or before May 23, 2025. The Board of Directors of the company in its meeting held on May 14, 2025 has considered and approved the same.
Samhi Hotels acquires/builds primary hotels and thereafter renovates, rebrands and rerates the property and runs it.
