TIDMIHC
RNS Number : 7764T
India Hospitality Corp.
11 June 2009
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India Hospitality Corp. Announces Acquisition of "You" Brand
Company Plans Brand Expansion Throughout Core Hospitality and Lodging Business
London - 11 June 2009 - India Hospitality Corp. (LSE: IHC) (the "Company",
"IHC") today announces it has entered into an agreement (the "Agreement") with
Firstcorp Invesco Pvt Ltd ("Firstcorp") to acquire the "You" brand from
Firstcorp for a cash consideration of $400,000. IHC intends to rapidly expand
this newly acquired brand throughout its vertically integrated Indian
businesses, particularly in its lodging segment.
"You" is a contemporary hospitality brand characterised by technology, youth,
and consumer understanding. The "You" brand propagates the "Living" concept
which is positioned around a central theme of a lifestyle enabled by
hospitality, contemporary living and communities, fashion retail, food and
beverage, wellness and business centres.
"We are excited to launch "You" through core hospitality businesses," remarked
Jason Ader, Chairman of IHC. "This cutting edge brand is ideally designed to
accelerate the pace of development of our lodging business, which we continue to
believe presents a very attractive return on investment opportunity in India."
Related Party Transaction
Firstcorp is a company owned and controlled by Ravi Deol, who is a Director and
CEO of IHC, and Sandeep Vyas, Chief Operating Officer and also a Director of
IHC. Through the transaction Firstcorp will be paid a cash consideration of
$400,000. The cash payment to Firstcorp for the "You" brand acquisition is
therefore classified as a related party transaction for the purposes of the AIM
Rules. Accordingly the Directors (other than Ravi Deol and Sandeep Vyas), having
consulted with Grant Thornton UK LLP (in its capacity as the Company's nominated
adviser), confirm that they are satisfied that the terms of the Agreement are
fair and reasonable insofar as the shareholders of the Company are concerned.
For Further Information Contact:
India Hospitality Corp.
Raghavendra Agarwal
+91-22-40906148
ragarwal@ihcor.com
www.indiahospitalitycorp.com
Nominated Adviser: Grant Thornton UK LLP
Fiona Owen
Tel: +44 20 7383 5100
Media Contact: Mutual Public Relations Ltd.
Harsh Wardhan
+91 11 43620700
Investor Relations Contact: ICR Inc.
William Schmitt
+1 203-682-8200
About India Hospitality Corp.
India Hospitality Corp. is a diversified pan-Indian hospitality and leisure
company. In July 2007, IHC closed on the acquisition of India-based Mars
Restaurants Private Limited, an emerging hotel and restaurant company, and
SkyGourmet Catering Private Limited, an airline catering company with 2,800
employees across its facilities in India, from Navis Capital Partners and its
affiliates.
This information is provided by RNS
The company news service from the London Stock Exchange
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