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Hotel Leelaventure board approves proposed name change of company

As part of the Brookfield transaction, the word "Leela" would not be a part of the company's name, Hotel Leelvaenture said in a filing to the BSE.

PTI|
Oct 22, 2019, 09.29 PM IST
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Agencies
Agencies
The promoter companies have also completed the transfer of the Leela brand and trademarks in the hotels and hospitality space to Brookfield.
Hotel Leelaventure on Tuesday said its board has approved the proposed change in name of the company to 'HLV Ltd' or some other suitable name, if it is not available. As part of the Brookfield transaction, the word "Leela" would not be a part of the company's name, Hotel Leelvaenture said in a filing to the BSE.

"The total consideration of Rs 3,950 crore was received from Brookfield on October 16, 2019 and the entire consideration, net of transaction-related costs of Rs 70 crore, were used to repay the banks and financial institutions who were lenders to the company, in full and final settlement, as one-time settlement," it added.

Hotel Leelaventure said that after the full and final settlement with its lenders, they have issued release letters to the company. The board has also approved the resignations of Rajiv Kaul as President and Rajan Shah, its Chief Financial Officer as they wanted to move to Brookfield. The board also approved the appointment of Umesh Dombe as the Chief Financial Officer with effect from October 23, it added.

The promoters/promoter group companies have also completed the transfer of the Leela brand and trademarks in the hotels and hospitality space to Brookfield and have received consideration of Rs 150 crore, it added. The company will continue to own and operate the hotel in Mumbai under the Leela brand, licensed to it by Brookfield, it said.

The company also continues to own the land in Hyderabad and its share of apartments under the joint development project of residential apartments with Prestige Developers in Bengaluru, adjoining The Leela Palace Hotel, it added. Shares of Hotel Leelaventure on Tuesday closed at Rs 8.45 per scrip on the BSE, down 4.52 per cent from its previous close.

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