In the past one year, Minor has aggressively bid for marquee properties across the globe, and its proposed acquisition of Leela will reportedly be funded by a mix of equity and debt.
A consortium including Thailand’s Minor International and Trinity White City Ventures plans to invest about Rs 2,500 crore (or $350 million) in Hotel Leela Venture, sources told Bloomberg.
The proposed bid includes a mix of equity and debt, the report said, adding that if the deal goes through, the consortium would end up acquiring a majority stake in the Mumbai-based hospitality firm.
Hotel Leela Venture runs a chain of hotels and resorts, with nine properties, across India, its FY18 annual report stated.
“Minor is always on the lookout for good investment opportunities, which includes Hotel Leela Venture. But nothing is set in stone. We are currently exploring the option,” Dillip Rajakarier, CEO of Minor’s hotel unit, told the wire.
A representative for Trinity confirmed the plan, the report stated. A spokeswoman for Hotel Leela Venture told the wire, “Right now there is nothing to share. We will make an official announcement once everything in finalised and we move towards a decision.”
Minor has been expanding through acquisitions, spending $2.6 billion in 2018 to take control of Spanish chain NH Hotel Group. Trinity White City Ventures, the family office of Shahal Khan, was behind an aborted attempt to acquire New York’s iconic Plaza Hotel for $600 million earlier this year, the report said. The deal fell apart after a series of lawsuits over the sale process, with the historic property eventually being acquired by a Qatari state-owned company.
