Pune: Param Kannampilly, managing director of Concept Hospitality Ltd, who owns 40% stake in the company, is in talks to buy the remaining. Concept Hospitality is a unit of Kamat Hotels India Ltd.
Kannampilly, who co-founded the firm with Kamat group chairman and managing director Vithal Kamat and Ramesh Sanbag at least a decade ago, will pick up the stake for Rs6 crore. In December 2007, Kamat Hotels bought 60% stake in Concept Hospitality for an undisclosed sum.
“We are finalizing the deal and it is premature to give details,” Kannampilly said. The deal is expected to be closed by the end of March. He said he has plans to divest part of his stake later to a partner.
Mumbai-based Kamat Hotels operates hotels and restaurants located in Mumbai, Nashik, Nagpur and Pune. On 2 February, Kamat Hotels told the Bombay Stock Exchange it will divest its stake in Concept Hospitality. It is not clear why it is divesting the stake. Incidentally, promoters of Kamat Hotels have pledged 47.09% stake to raise funds. Kamat was not available for comment.
Concept Hospitality currently has 10 properties across India and at least four more hotels are expected to open in the next fiscal. Kamat Hotels earned revenues of Rs147.62 crore for fiscal 2008.