The Hindu Business Line : Xander ups stake in Sinclairs Hotels; open offer at Rs 172.50/share

Kolkata, April 4 Xander Investment Holding X Ltd, a Mauritius-registered financial investment outfit of the private equity player Xander group, is set to convert the remaining warrants, issued to it in December 2007 by Kolkata-based and BSE-listed Sinclairs Hotels.

This also triggers an open offer by Xander for 20 per cent in the company. The total paid up equity and shareholding pattern of Sinclairs after the conversion of warrants would change. The paid-up equity is to enlarge to Rs 6.07 crore from Rs 4.67 crore.

The promoter holding would come down to 50.11 per cent from 62.34 per cent and Xander’s holding would go up to 29.24 per cent from little over 12 per cent.

Xander is coming up with the open offer to other public shareholders at a price of Rs 172.50 a share, same as the conversion price of warrants into equity.

The offer is slated to open on May 20 and close on June 8. If responses to the offer were full, Xander’s holding would go up to 49.24 per cent. But, Xander has undertaken to declare that it has no intention of taking over management control of Sinclairs, which has five hotel properties in the country.

Nominee directors

It will, however, reserve the right to appoint nominee directors on the board of Sinclairs and protect its investments.

It has also disclosed in a public announcement that Sinclair would continue to be listed on the bourses. Currently, apart from the BSE, it is also listed on the CSE.

The stock price has already gone past the offer price. On Thursday, it closed at Rs 175.

The public shareholders include MCCS Investment Holding and MRCS Investment Holding, which holds more than half of the other public shareholding post conversions and equity enhancement of 20.65 per cent.

More Stories on : Mergers & Acquisitions | Open Offers | Hotels

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