Mahindra Holidays to acquire stake in Holiday Club of Finland

Mahindra Holidays will acquire 18.8 per cent stake in European vacation ownership firm Holiday Club Resorts Oy of Finland for euros 18 million.
Mahindra Holidays & Resorts India Ltd has signed definitive agreements with the shareholders of Holiday Club Resorts Oy of Finland to initially acquire 18.8 per of its shares with a right to increase its ownership over a period of two years, the company said today in a filing to BSE.
The initial acquisition will be completed in a month's time subject to required regulatory approvals, it said.
"The acquisition of Holiday Club Resorts will elevate Mahindra Holidays to a global leader in the vacation ownership industry.

This timely acquisition not only provides access to European assets, technology and processes, but more importantly, provides a springboard to Mahindra Holidays for growth in Europe and other international destinations," Mahindra Group Chairman Anand Mahindra said in the statement.
Holiday Club has a membership base of over 50,000 families and is a leading leisure brand in Europe, it said, adding, once full ownership is achieved, the combined entity has the potential to become the largest vacation ownership company in the world, outside the United States.

It has an efficient sales and marketing organisation in addition to strong core competencies in the design of holiday homes and apartments, spa hotels and resort management, it said.

Holiday Club Resorts Oy (Holiday Club) has 32 resorts, of which 24 are located in Finland, two in Sweden and six in Spain. Seven of these resorts have spa hotels with indoor water parks, the statement said.
Besides, the Holiday Club has also recently started selling fractional membership, a concept that has been well received by its European clients.
"This acquisition is part of a larger vision to widen our international footprint. We are excited at the prospect of expanding in Europe and the Middle East along with Holiday Club. We are confident that synergies from this acquisition will fuel and propel our future growth," Mahindra Holidays chairman Arun Nanda said.

"We are excited about the various development opportunities and synergies that the collaboration of two market leaders will bring about. We look forward to prospecting new opportunities to expand further in Europe," Holiday Club CEO Vesa Tengman said.
The proposed acquisition will enable Mahindra Holidays to make significant inroads into the European markets and to leverage Holiday Club's expertise in the vacation ownership model, as well as its strong technology platform and talent pool, the company said.