In the process of exiting EIH stake: Analjit

Max India Chairman Analjit Singh today said he was talking to Oberoi Hotel promoters to sell his 4 per cent stake in hospitality firm East India Hotels (EIH), where Mukesh Ambani-led Reliance Industries (RIL) had bought stake to save it from possible hostile takeover by rival ITC.

"I have been in the process of exiting the EIH stake, through a dialogue with PRS Oberoi," Singh said in a statement.

EIH that operates hotels and resorts across India under Oberoi and Trident brands had on Monday announced that it has sold 14.12 per cent from the promoter's stake for Rs 1,021 crore to RIL.

RIL has since increased its stake to 14.80 per cent, EIH said in a filing with the stock exchanges today, fuelling speculation that the stake could reach the 15 per cent threshold triggering an open offer.

Earlier this year, Singh had reduced his shareholding in EIH to from 7 per cent to 4 per cent.

According to industry observers, Singh's announcement does not seem to have any connection with the latest RIL-EIH deal.

"He (Singh) has reduced his stake from 7 per cent already to 4 per cent and he as been saying that he plans to sell the remaining stake as well," Elara Securities, analyst, Himani Singh said.

She said Singh will find buyers and the current management will be in sync with that as any decision will be taken in consultation with PRS Oberoi, the Chairman of EIH.

Max India's shares today closed at Rs 154.25 per share registering a rise of 0.33 per cent on the Bombay Stock Exchange. While EIH's shares closed at Rs 143.70 per share registering a jump of 2.68 per cent. Even RIL's shares closed at a 1.92 per cent higher price at Rs 936.45 per share.