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Hotel Leelaventure gets shareholders' approval on resolution for asset sale

The shareholders also gave their nod to the sale of the company's hotel operations undertaking

Hotel Leelaventure
Hotel Leelaventure

Hotel Leelaventure on Friday said that its shareholders had approved resolutions to sell its four hotels, hotel operations, and its shares in the company's arm Leela Palaces and Resorts Ltd by a postal ballot.

The company, however, said it will abide by the directions of the Securities and Exchange Board of India that none of the transactions proposed in its postal ballot notice will be acted upon till further directions from the markets regulator.

On Wednesday, Sebi asked Leelaventure not to proceed with the Brookfield Asset Management deal, following letters of objection from foods-to-tobacco major ITC and state-owned insurance giant Life Insurance Corporation (LIC).

The hotels, the sale of which shareholders have approved, are in Delhi, Bengaluru, Chennai and Udaipur, Hotel Leelaventure said in a filing to the BSE. It had sought shareholders approval in the March 18 postal ballot notice. The voting period ended on April 24.

The shareholders also approved the sale of the company's hotel operations undertaking and sale of the company's shareholding in Leela Palaces and Resorts Ltd, its wholly-owned subsidiary, it added.

The special resolutions were approved by 86.60 per cent of the votes that were polled, while 13.39 per cent opposed the resolutions, it added.
 
"As directed by Sebi vide its letter dated April 23, 2019, read with its e-mail dated 25th April, 2019, the company will ensure that none of the transactions proposed in the company's postal ballot notice dated March 18, 2019, will be acted upon till further directions from Sebi," Hotel Leelaventure said.

In its letter to Leela, the market regulator said, “While these representations are being examined by Sebi, in view of the paucity of time involved and in the interest of investors in securities, you are advised to ensure that none of the transactions proposed in the postal ballot notice dated March 18, 2019, is acted upon till further directions from Sebi.” 

Shares of Hotel Leelaventure on Friday closed at Rs 10.61 per scrip on the BSE, down 2.12 per cent from its previous close.