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Leelaventure business acquired by Brookfield, company informs BSE

In a notification to the Bombay Stock Exchange on Thursday, Hotel Leelaventure has said as indicated in its postal ballot notices dated March 18, 2019, and August 10, 2019, its business has been aquired by Brookfield and the total consideration payable to the company with respect to the transactions set out in the postal ballot notices has been received and paid to the various banks and financial institutions who were lenders of the company.

Last month, the Securities and Appelate Tribunal (SAT) had allowed Leela's sale of assets to Brookfield, rejecting the ITC application challenging Sebi's order. The SAT had also vacated its interim order barring Leelaventure to declare results of the postal ballot.

Around 89 per cent of Leela's shareholders had voted in favour of the deal. The company declared the results of the postal ballot after SAT lifted the stay.

In March this year, Leela Venture announced that Canadian alternative asset management company Brookfield had agreed to purchase its key hotel properties in Delhi, Bengaluru, Udaipur and Chennai for Rs 3,950 crore. The company had a debt of Rs 3,781 crore at the end of fiscal 2018.

Along with LIC, which holds a 2.38 per cent stake, ITC also approached Sebi, alleging that the deal violated rules on the related-party transaction. Following the complaints by LIC and ITC, the Sebi had directed parties to hold the transaction.

Later in its order, Sebi had asked Hotel Leelaventure to put to vote afresh the asset sale transaction of the company before the shareholders besides providing additional disclosures in its postal ballot notice for asset sales to Brookfield like details of valuation of both the asset sale transaction and additional intellectual property transaction including the methods adopted by the company.

Kolkata-based ITC, a minority shareholder in Hotel Leela Venture, had been seeking a waiver on the equity-ownership threshold to be eligible to file a case claiming oppression and mismanagement against the embattled provider of luxury leisure accommodation.
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