Eco Hotels and Resorts Ltd to acquire 100% in Vitizen Hotels Ltd

The board of directors of Eco Hotels and Resorts Limited (Formerly known as Sharad Fibres & Yarn Processors Limited) has approved the proposal for acquisition of 100% shares of Vitizen Hotels Limited (VHL), a company incorporated under the Companies Act, 2013, having its registered office at D-09, Eastern Business District, LBS Road, Bhandup (West) Mumbai - 400 078 and also approved the signing of MOU with the shareholders of Vitizen Hotels Limited.

Basis of MoU:

The Company intends to take over 100% shares of Vitizen Hotels Limited, this deal includes to get all properties being managed by Vitizen. The Company got 1075 rooms under operation.

The board approved the proposal for acquisition of 54.75% equity shares in Vitizen Hotels Limited company ("VHL"), a public limited company, incorporated under the Companies Act, 2013, bearing Corporate Identity Number U74120MH2015PLC267791, with its registered office at D-09, Eastern Business District LBS Road, Bhandup West, Mumbai - 400078, from its existing shareholders and promoters, at an acquisition price as may be determined by Independent Registered Valuer in terms of Securities and Exchange Board of India (Issue of Capital and Disclosure Requirements) Regulations 2018 ("SEBI ICDR Regulations").

The board also approved the proposal to pay the 15.31 Crores consideration for acquisition of (VHL) by way of issuance of such number of fully paid-up equity shares of Eco Hotels and Resorts Limited (Formerly known as Sharad Fibres & Yarn Processors Limited) on preferential basis to the shareholders of the VHL, i.e., by way of 54.75% share swap, at such price as determined in accordance with SEBI ICDR Regulations.

The board also approved the proposal to acquire 45.25% for which the Purchase Consideration will be paid by Eco Hotels and Resorts Limited in cash which comes to INR 12,65,44,788 (INR Twelve Crores Sixty Five Lakhs Forty Four Thousands Seven Hundreds Eighty Eight) whereby EHRL will get 16,94,040 (Sixteen Lakhs Ninety Four Thousands and Fourty) fully paid equity shares of nominal value of INR 10 per share of Vitizen Hotels Limited.

Shares of SHARAD FIBRES & YARN PROCESSORS LTD. was last trading in BSE at Rs. 37.18 as compared to the previous close of Rs. 36.46. The total number of shares traded during the day was 39791 in over 25 trades.

The stock hit an intraday high of Rs. 37.18 and intraday low of 37.18. The net turnover during the day was Rs. 1479429.00.

Source : Equity Bulls

Keywords

EcoHotelsandResorts INE638N01012 Acquisition VitizenHotels