Business
Agreement with Gategroup
Agreement with Gategroup.
About this update from Inspiration Healthcare Group Plc
[{"type":"text","content":"\n RNS Number : 0122W India Hospitality Corp. 11 November 2010 \n \n\n \nIndia Hospitality Corp.\n(the \"Company\" or \"IHC\")\n \nAgreement with Gategroup in relation to the\nCompany's Skygourmet airline catering business\n \nLondon - 11 November 2010 - IHC is pleased to announce that it has today entered into an agreement with Gategroup Investments Singapore Pte Ltd (\"Gategroup\"), a wholly owned subsidiary of gategroup Holding AG, in relation to its wholly-owned airline catering company Skygourmet Catering Private Limited (\"Sky\"). As part of this agreement, IHC has sold 74 per cent. of its interest in Sky to Gategroup (the \"Sale\") and has also entered into a put and call arrangement with Gategroup in respect of its remaining shares in Sky. The transaction implies an enterprise value for the whole of Sky of approximately USD92 million.\n \nTransaction details\n \nPartial exit from Skygourmet\n \nIHC, its wholly-owned subsidiary IHC Mauritius (\"IHC Mauritius\"), Sky and Gategroup have entered into a share purchase agreement pursuant to which IHC and IHC Mauritius have sold 74 per cent. of the shares in Sky to Gategroup (the \"SPA\").\n \nThe consideration for the Sale is USD39 million in cash, subject to post-completion adjustment to take account of any movement in the net debt of Sky between 30 September 2010 and 31 October 2010. IHC Mauritius is also entitled to receive an additional payment equal to any amounts received by Sky (net of expenses) in connection with the sale of certain land in Delhi owned by Sky.\n \nUSD4.85 million of the consideration for the Sale is to be paid by Gategroup into an escrow account to be held by Deutsche Bank until 10 November 2013 to meet potential claims under the SPA.\n \nSky Shareholders' Agreement\n \nIHC, through its wholly-owned subsidiary IHC Mauritius, will continue to hold 26 per cent. of the shares in Sky. IHC Mauritius has entered into a shareholders' agreement with Gategroup and Sky to govern the ongoing joint venture relating to Sky (the \"Shareholders' Agreement\"). The Shareholders' Agreement contains, among other things, provisions relating to the appointment of directors to the board of Sky, certain restrictions on the corporate actions of Sky without the consent of IHC Mauritius and re...