RIL won’t have involvement in management or operation: EIH

Reliance Industries on Monday acquired a 14.12% stake in East India Hotels (EIH) from the company’s promoters. Post the deal, the promoters will hold 32.31% stake in the company.

“RIL wanted to invest in the hospitality industry and we welcome their investment in our company as it will satisfy our growth strategy. RIL will also not have any involvement with the management or operation of EIH. Whether they will have any board representation, will depend on the company’s board,” said Chairman and Chief Executive Officer of EIH, PRS Oberoi.

Why RIL?

“There were other interested players that had approached but they were not compatible with the company’s objectives,” Oberoi said adding that Reliance is a long-term investor. “Moreover we (Reliance and EIH) have no conflict of interest.”

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Tags: East India Hotels, Hotel Sector, RIL

Category: Stock-News