Reliance Industries said late Saturday that it has entered a pact to acquire Mandarin Oriental, a premium luxury hotel in New York, for an equity consideration of around $98.15 million. It is a Strategical decision by reliance to diverse its business in hospitality. The company already had investments in EIH (Oberoi Hotels) and has acquired the 300-acre Stoke Park country club in Buckinghamshire. Reliance Industrial Investments and Holdings Limited (RIIHL), has entered into an agreement to acquire the entire issued share capital of Columbus Centre Corporation (Cayman), a company incorporated in the Cayman Islands and the indirect owner of a 73.37% stake in Mandarin Oriental New York.
“The closing of the transaction is anticipated to occur by the end of March 2022 and is subject to certain customary regulatory and other approvals and the satisfaction of certain other conditions. In the event that the other owners of the hotel elect to participate in the sale transaction, RIIHL would acquire the remaining 26.63%, based on the same valuation used for the acquisition of the indirect 73.37% stake,” Reliance said.