Claridges Hotels buys out SB Luthria group from Sea Rock Hotel
Our Corporate Bureau / Mumbai September 14, 2005
The Delhi-based Claridges Hotels and Resorts has agreed to buy out 30 per cent stake of the SB Luthria group in the Mumbai-based Sea Rock Hotel for Rs 132 crore in an out-of-the-court settlement, putting an end to a five-month dispute.
The problem began after Claridges Hotels acquired 70 per cent stake from UB Luthria and G B Luthria. But S B Luthatia, owner of the remaining 30 per cent, refused to sell his stake and filed a case with the Bombay high court contesting the veracity of the sale of 70 per cent stake by his brothers.
The Bombay High Court has asked Sky Deck Properties, a Mumbai-based developers who bought S B Lutharia's 30 per cent stake , to submit a valuation report of the hotel.
The court has also given Claridges an option to buy the 30 per cent stake, or sell its 70 per cent stake. The price, the court directed, would be decided on the valuation report.
Sanjeev Nanda, managing director of Claridges, said both the parties had decided to settle the dispute amicably.
The operations at the hotel came to almost stand still since the 1993 bomb blast. Of the total 432 rooms, only 40 rooms are operational. Sea Rock stands opposite to a seven-star hotel of the Taj group in Bandra.
Claridges Hotels buys out SB Luthria group from Sea Rock Hotel
Our Corporate Bureau / Mumbai Sep 14, 2005, 11:30 IST
Content Guide
