Mahindra Holidays-Holiday Club Resorts entity becomes largest in the world ex-USA.
A Committee of Directors of the Board of Mahindra Holidays & Resorts India Limited (MHRIL), India’s leading leisure hospitality provider, today approved the exercise of its option to increase its stake in Holiday Club Resorts Oy, Finland (HCR) up to 88%. MHRIL already owns a 23.3% stake in Holiday Club Resorts Oy.
Pursuant to the agreement signed earlier with the existing shareholders of HCR, MHRIL’s holding in HCR will go up to approximately 88% of the equity capital of HCR. The total consideration for this is estimated to be Euro 28 million, subject to acceptance of the exercise of the options by the shareholders of HCR. MHRIL would make this investment through its overseas step-down subsidiary/subsidiaries. The deal is expected to be completed in a 2-3 month time-frame, subject to regulatory approvals, including anti-trust approvals in different jurisdictions.
Commenting on this development, Arun Nanda, Chairman, Mahindra Holidays and Resorts, Limited, said, “I am extremely pleased that we have decided to exercise our option to increase Mahindra Holiday’s stake in Holiday Club Resorts, Finland to 88%, well ahead of the exercise period deadline of 2016.
Our experience of working with the local management over the last one year has given us the conviction that they are the right platform for our growth strategy in Europe and the Middle East.
With this acquisition, Mahindra Holidays will become the world’s largest vacation ownership company outside the United States and amongst the top five in the world”.
Kavinder Singh, Managing Director and Chief Executive Officer, Mahindra Holidays, also commented on the transaction, “With the acquisition of HCR, we see huge potential for synergy between the two market leaders in the areas of technology, new products and member services. We believe that this acquisition will further strengthen Club Mahindra’s proposition of providing leisure family holidays at unique destinations. Our 1.83 lac members will now have an additional choice of 32 resorts in Europe, alongside our existing 45 resorts in India and abroad.
Commenting on the development, Vesa Tengman, Chief Executive Officer, Holiday Club Resorts Oy, Finland, said, “I am glad that Mahindra Holidays has decided to exercise the option to increase its ownership in Holiday Club Resorts. I believe that merging of two local market leaders will provide significant synergies. Our management is excited about all the opportunities that will come along with the deeper cooperation with Mahindra Holidays”
ABOUT MAHINDRA HOLIDAYS & RESORTS INDIA LIMITED
Mahindra Holidays & Resorts India Limited (MHRIL), India’s leading player in the leisure hospitality industry, offers quality family holidays primarily through vacation ownership memberships. While Club Mahindra is the flagship brand, the other brands offered by the company are – Club Mahindra Fundays and Svastha Spa. As on March 31, 2015, MHRIL has ~183,000 vacation ownership members and operates 45 resorts across India and abroad.