Hotel Leelaventure seeks shareholders' nod for asset sale

Hotel Leelaventure is seeking shareholders' nod to sell four hotels, including one in the national capital, and other assets to Canadian investment fund Brookfield Asset Management for Rs 3,950 crore.

In a regulatory filing Monday, the company said it is seeking approval for special resolutions from its shareholders through postal ballots to sell the different hotels.

As per the postal ballot notice, the company said its board has approved selling The Leela Palace, New Delhi together with all its assets and liabilities as a going concern, on a 'slump sale' basis, to an Indian subsidiary of BSREP Ill India Ballet Pte Ltd (Brookfield) for a lumpsum consideration of Rs 1,705 crore.

Similarly, the board has also approved selling of the company's Bengaluru hotel undertaking as a going concern on a 'slump sale' basis to Brookfield for a lumpsum consideration of Rs 1,000 crore.

The company further said its Chennai hotel will be sold to the same buyer in a similar manner for a lumpsum consideration of Rs 675 crore.

The Udaipur hotel undertaking will also be sold for a lumpsum consideration of Rs 320 crore.

Further, Hotel Leelaventure said the board has approved sale of its hotel operations undertaking pertaining to hotel management operations together with all its assets and liabilities for Rs 135 crore.

Moreover, the board has given its nod to sell the company's entire shareholding in Leela Palaces and Resorts Ltd, a wholly-owned subsidiary that owns property and holds licences for the development of a hotel in Agra, for Rs 115 crore.

The voting by shareholders will commence on March 26 and end on April 24 and the result will be declared on April 26, the filing said.