Leelaventure gets shareholders' nod to sell hotels; to abide by Sebi directive

INSUBCONTINENT EXCLUSIVE:
New Delhi: Hotel Leelaventure Friday said its shareholders have approved the resolutions to sell its four hotels, hotel operations, and its
shares in the company's arm Leela Palaces and Resorts Ltd by postal ballot. The company, however, said it will abide by the directions of
Sebi that none of the transactions proposed in the its postal ballot notice will be acted upon till further directions from the markets
regulator. The hotels for which shareholders have given approval are in Delhi, Bengaluru, Chennai and Udaipur, Hotel Leelaventure said in a
filing to the BSE. The shareholders also gave their nod to the sale of the company's hotel operations undertaking and to the sale of the
company's shareholding in Leela Palaces and Resorts Ltd, its wholly-owned subsidiary, it added. All 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. On
March 18, Hotel Leelaventure Ltd (HLVL) had announced the sale of its four hotels located in Bengaluru, Chennai, Delhi and Udaipur, as well
as a property to Canadian investment fund Brookfield for Rs 3,950 crore
It had sought shareholders' approval. The Securities and Exchange Board of India (Sebi) in its letter to Hotel Leelaventure on April 23 said
it has received representations from ITC, which has also moved the National Company Law Tribunal against Hotel Leelaventure alleging
"oppression and mismanagement", and minority shareholder Life Insurance Corporation (LIC) and, then, it restrained the company from going
ahead with the deal till further directives. 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.