Business
Option to Reinvest
Option to Reinvest.
About this update from Inspiration Healthcare Group Plc
[{"type":"text","content":"\n India Hospitality Corp.\n19 June 2007\n\n\nFor Immediate Release 19 June 2007\n\n\n\n India Hospitality Announces US $110 Million Deal to Form a Growing Diversified\n India-Based Hospitality Company\n\n Sellers Retain Option to Reinvest up to US $75 million in India Hospitality\n\n\nNew York, NY. - June 19, 2007 - India Hospitality Corp. (LSE: IHC, IHC or India\nHospitality), today announced its intention to acquire India-based Mars\nRestaurants Private Limited (MRPL or Mars), an emerging hotel and restaurant\ncompany, and SkyGourmet Catering Private Limited (SCPL or SkyGourmet), an\nairline catering company operating out of four locations in India, for\napproximately US $110 million to create a diversified hospitality company\nservicing the rapidly growing Indian travel and leisure marketplace from\naffiliates of Navis Capital Partners, a private equity firm with offices in\nKuala Lumpur, Hong Kong, and Bangkok, and certain private shareholders.\n\n\nUnder the terms of the acquisition agreement, the sellers of MRPL and SCPL will\nreceive approximately US $110.0 million of which approximately US $91.6 million\nwill be payable in cash with the remainder in IHC ordinary shares on completion\nof the transaction. Additional consideration may become payable if the\nbusinesses achieve certain performance targets.\n\n\nUpon completion of the transaction, current India Hospitality shareholders will\nown approximately 88.9% of IHC and insiders, including Hayground Cove Asset\nManagement and Navis Capital Partners, will hold approximately 51.1%. Affiliates\nof Navis Capital Partners and Mr. Sanjay Narang, the founder of both SkyGourmet\nand Mars, will continue to play an active role in the management of the combined\nbusinesses going forward.\n\n\nNavis is retaining an option to reinvest a substantial portion of the sale\nproceeds into IHC. Navis and its affiliates will be granted an option to\nsubscribe in aggregate for up to US $75.0 million in cash for new IHC ordinary\nshares, which, if exercised in full, would result in its ownership interest in\nIHC increasing to approximately 20.7% on a fully diluted basis.\n\n\nUnder the proposed transaction IHC has also agreed, subject to certain\nconditions, to purchase from Navis and its affiliates, Nirula's, a rapidly\ngrowing quick service restaurant chain with strong brand recognition thr...