Royal Orchid to Acquire Balance Stake in Cosmos Premises
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Royal Orchid Hotels Limited (ROHL) have entered into a Memorandum of Understanding with Vascon Engineers Limited (VEL), R. Vasudevan HUF (Promoter of VEL) and Conamore Resorts Private Limited (Related Party of Promoter of VEL) to acquire the remaining 50% stake in Cosmos Premises in lieu of 100% stake in Rivershore Developers Pvt Ltd (RSDPL) and settling of liabilities in the books of RSDPL on August 21, 2021.
The aforesaid MOU has been approved by the Audit Committee and Board on August 21, 2021.
Pursuant to the aforesaid MOU from the total proceeds of Rs. 52.50 cr. received from sale of RSDPL, all the liabilities of RSDPL shall be paid and the balance amount shall be the share price. Since for the purchase of the remaining stake of Cosmos Premises Pvt Ltd the aforesaid amount of Rs. 52.50 crores would be required to be re-paid to Vascon Group, there will be shortfall for the same. Hence it is proposed that ROHL would re-borrow the amount of Rs. 10.06 Crores from Baljees Hotels and Real Estates Private Limited (BHPL) which BHPL would receive from RSDPL.
A Postal Ballot would be done by the Company to seek member's approval for the aforesaid transactions. The transactions are subject to completion / satisfaction of conditions of the MOU and execut1on of further definitive agreements as may be necessary.