Asian Hotels plans to raise Rs180 crore

Asian Hotels plans to raise Rs180 crore
PTI
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First Published: Wed, May 09 2007. 12 10 AM IST
Updated: Wed, May 09 2007. 12 10 AM IST
Mumbai: Hospitality firm Asian Hotels Ltd plans to raise about Rs180 crore through non-convertible preference shares.
Earlier, on 30 April, the company had proposed to raise Rs90 crore through redeemable non-convertible preference shares, but later suspended the scheme.
The suspension came due to a notification from the finance ministry, which said that foreign investment through optionally-convertible preference shares would be considered as debt that needed to comply with the guidelines on external commercial borrowings, Asian Hotels informed the Bombay Stock Exchange.
The company’s board of directors will meet on 14 May to consider the issue of non-convertible, redeemable preference shares of up to Rs180 crore. Other proposals such as approval for the revised draft scheme of arrangement and demerger for restructuring the firm, as well as reclassification or increase of the authorized share capital, would also be discussed at the meeting.
This is because the proposal to raise the earlier amount of Rs90 crore was in conjunction with the board’s approval for a scheme of the firm’s demerger, resulting into three separate undertakings, it said.
The proposal to alter the authorized share capital of the company as well as the resultant changes in the memorandum and articles of associations were already approved.
Because of this, further modifications in the already approved draft scheme of arrangement and demerger would also be required, Asian Hotels said.
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First Published: Wed, May 09 2007. 12 10 AM IST
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