03-13-2016, 03:25 PM
After attempting to buy the company over the past few years, Indian Hotels Co. (IHCL), operators of the Taj hotel brand, said Friday that its subsidiary Samsara Properties has sold its 1.24% stake in Belmond for US$11.96 million. At an average price of US$9.4 per share, Mumbai-based IHCL is taking a huge loss compared to the price it paid seven years ago, which was around an all-time high of US$35 per share. The sale price is also lower than the US$12.63 per share offered by IHCL to buy Belmond in 2012. Post sale, Samsara Properties continues to hold 5.73% of the Class 'A' Common Shares of Belmond. The company intends to exit Belmond in due course. The sale proceeds will be utilized for retirement of gross consolidated debt as IHCL aims to reduce its debt by at least 30% by end of next financial year through unlocking of value in some of its assets.