Indian Economy News

ITC to buy Park Hyatt Goa for Rs 515 crore

Kolkata: ITC is on an acquisition spree. Within a fortnight of a major buy in the personal care products space, the Rs 45,000-crore conglomerate looks set for an over Rs 500-crore acquisition in the hospitality sector.

On Monday evening, the FMCG-to-hotel-to-tobacco giant was declared the highest bidder — at the bid price of Rs 515 crore — by IFCI for Park Hyatt Goa, a five-star deluxe property of Delhi-based Blue Coast Hotels Group. Park Hyatt Goa was put up for sale by IFCI under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act.

ITC spokesperson was not available for comment.

As the successful bidder, ITC has already remitted Rs 128 crore as 25% of the bid amount, complying with the terms of the tender document. "ITC has been advised to remit 75% of the balance amount within 15 days for the confirmation of sale," an IFCI official said.

ITC has been scouting for acquisition opportunities in the hospitality industry for over a decade. Over the years, the company has acquired nearly 15% stake in EIH, the flagship of the Oberoi Group, as a strategic investment. To stave off any possible takeover bid, the Oberois entered into an agreement with RIL, which bought a stake in EIH in 2010.

ITC had also shown interest in Hotel Leelaventure a few years back.

Blue Coast, the owner of Park Hyatt Goa, frayed into hospitality in 1996 with the acquisition of a 45-acre parcel of land in Goa where it built its flagship Park Hyatt Resort & Spa.

ITC on February 13 acquired the India business of Savlon and Shower To Shower — two of the major brands of consumer and healthcare multinational Johnson & Johnson (J&J).

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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