New Delhi: Cash-strapped Hotel Leelaventure on Wednesday said capital markets regulator Sebi has barred it from selling its four hotels and other assets to Canadian investment fund Brookfield Asset Management till further directions. On March 18, Hotel Leelaventure Ltd (HLVL) had announced sale of its four hotels located in Bengaluru, Chennai, Delhi and Udaipur, as well as a property to Canadian investment fund Brookfield for Rs 3,950 crore. It had sought shareholders approval and voting was scheduled to end on Wednesday.
The Securities and Exchange Board of India (Sebi) in its letter to Hotel Leelaventure said it has received representations from ITC, which has also moved the National Company Law Tribunal against Hotel Leelaventure alleging “oppression and mismanagement”, and minority shareholder Life Insurance Corporation (LIC). Diversified group ITC has made certain allegations against HLVL, its promoters and JM Finanacial Asset Reconstruction Company Ltd with respect to postal ballot notice seeking shareholders nod for the sale, the letter said.
“…While representations are being examined by Sebi, in view of paucity of time involved and in the interest of investors in securities, you are advised to ensure that none of the transactions proposed in the postal ballot notice dated March 18 are acted upon till further directions from Sebi,” Hotel Leelaventure said in regulatory filing. On March 18, Hotel Leelaventure had entered into a binding agreement with a Brookfield Asset Management sponsored private real estate fund to sell, by way of slump sale, four owned Leela hotels located at Bengaluru, Chennai, Delhi and Udaipur and the property that it owns in Agra.
ITC moves NCLT seeking to cancel Leela sale
Mumbai: The NCLT on Wednesday issued notices to promoters of Hotel Leelaventure and its lender JM Financial ARC to reply to an ITC petition seeking a waiver of 10 percent minimum shareholding for minority shareholders to be counted in management matters and adjounred the matter to June 18. Though the National Company Law Tribunal (NCLT) was keen to admit the petition of ITC, which owns 7.92 percent in Leela, it did not do so citing procedural issues and decided to put the plea off to June 18. ITC is seeking a waiver of the 10 percent minimum shareholding requirement to file a petition alleging oppression and mismanagement against the hotel management and its lender JM Financial ARC.