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Wednesday, March 23, 2011

Viceroy Hotels gets approval for assignment deeds for hiving-off its 'Bangalore Project Division'


Viceroy Hotels’ board of directors have approved the execution of assignment deeds between the company, Viceroy Bangalore Hotels (VBHPL) and the owners of the land on which the Bangalore Project is implemented for assignment of the lease pursuant to hiving-off the 'Bangalore Project Division' to VBHPL.
The company’s board of directors also took in consideration the revised terms of the proposed investment by JP Morgan India Property Mauritius Company II in VBHPL and approved the draft Supplemental Agreement to be executed with VBHPL and JP Morgan India Property Mauritius Company II inter alia, thereby amending the terms of the Share Subscription Agreement and the Shareholders' Agreement dated April 13, 2010.
According to revised terms of such proposed investment VBHPL will cease to be a subsidiary of the company. Further, the investment under the Supplemental Agreement is proposed to be made immediately pursuant to the transfer of the Bangalore Project division to VBHPL.
The board approved to hive-off the said division at a consideration of Rs 205 crore and also approved to make investment in the equity share capital of the said WOS.

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