Gujarat JHM Hotels’ promoter wants to delist shares

May 29th, 2008 - 7:58 pm ICT by admin  

Ahmedabad, May 29 (IANS) Surat-based Gujarat JHM Hotels Ltd announced Thursday that its promoters JHM Hotels Inc was planning to delist company shares from the Bombay Stock Exchange (BSE). In a filing with the BSE, Gujarat JHM said the promoting firm has sought approval from share holders for its proposal to delist shares.

The proposal has been included in the agenda for the annual general meeting of the Gujarat JHM scheduled for July. If approved, the company could get publicly held shares, totalling 878,378, delisted. The promoters hold nearly 86 percent shares in the company.

The decision to delist shares follows a joint venture (JV) agreement JHM Hotels Inc reached with US-based Interstate Hostels and Resorts to operate hotels in India.

The 50:50 JV will be known as JHM Interstate Hotels India. It will mainly focus on securing management agreements on existing and to-be built hotels. The JV company is setting up an office in New Delhi.

Both Interstate and JHM have also announced plans to make investments in Duet India Hotels Ltd, a UK-based real estate investment fund dedicated solely to the investment of hotels in India.

The fund’s mission is to develop approximately 25 hotels in India in the three and four star categories, targeted at business travellers and located in secondary and tertiary cities, as well as satellite townships outside major urban centres. The fund is expected to invest up to $800 million over the next five years in India.

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