Reliance continues on it’s expansion spree. The Company now announces to buy 73.37% of Mandarin Oriental New York (MONY) for $98.15 mn i.e. approx Rs 735 crore.
Key points to note –
- The acquisition is by Reliance Industrial Investments and Holdings (RIIH), a wholly owned unit of Reliance Industries.
- RIIH is buying the entire issued share capital of Columbus Centre Corp, a company incorporated in the Cayman Islands, which indirectly owns the stake in Mandarin.
- RIIH is also open to buy the balance 26.63% of MONY at the same valuations, if those shareholders so wish.
- MONY, established in 2003, is an iconic luxury hotel and has won various influential awards. It had revenues of $115 mn in 2018, $113 mn in 2019 and $15 million in 2020.
- Hospitality is not a completely new business for Reliance. The group already has investments in EIH Ltd (Oberoi Hotels), Stoke Park Limited in UK and is also developing a convention centre, hotel and managed residences in BKC Mumbai.
There is just too much happening at Reliance. The kind of acquisitions, investments, tie-ups that the Company has done across business areas in last couple of years is unheard of – in Reliance’s own history as well as in general anywhere else.
Checkout Reliance Industry’s information tracker to check it.
It definitely is creating a fear of missing out (FOMO). Whether someone wants to participate in the same, is a function of his/ her own investing strategy.