Mahindra Holidays to hike stake in Holiday Club for euro 28 mn

Mahindra Holidays and Resorts India will hike stake in Finland's Holiday Club Resorts to 88 per cent by buying an additional 64.7 per cent for 28 million euro (over Rs 200 crore).
Besides, the company also plans to invest an additional 10 million euros in Holiday Club Resorts Oy in the form of equity or loan to finance growth of the Finnish firm in near future.
The investment committee of the board of directors today approved the exercise of its option to increase stake in Holiday Club Resorts (HCR) Finland by up to 88 per cent, the company said in a filing to BSE.

Mahindra Holidays, at present, holds 23.3 per cent stake.
"The investment required for this 64.7 per cent stake is 28 million euro," the company said, adding it would make the investment through overseas subsidiaries.
The deal is expected to be completed in two-three months subject to regulatory approvals in different countries, it added.

Mahindra Holidays and Resorts India (MHRIL) Chairman Arun Nanda said the company has decided to exercise its option to increase stake in HRC well ahead of the 2016 deadline.
"Our experience of working with the local management of Holiday Club over the last one year has given us the conviction that they are the right partner for our growth strategy in Europe and the Middle East."

HRC CEO Vesa Tengman said "the coming together of two local market leaders will provide synergies".
Shares of MHRIL were trading at Rs 240.25 apiece in the afternoon trade, up 1.18 per cent from the previous close on the BSE.