Mahindra Holidays & Resorts India (MHRIL), one of India’s leading leisure hospitality providers has announced completion of the necessary formalities for increasing its stake in Holiday Club Resorts Oy, Finland (HCR) to 83.20 per cent through its overseas subsidiary on September 2, 2015. Consequent to this transaction, HCR & HCR Management Oy, Finland became subsidiaries of the company with immediate effect. HCR is one of Europe’s leading vacation ownership companies, with 30 resorts in Finland, Sweden and Spain.
In addition to the above investments, MHRIL will make a fresh investment of 10 million Euros in equity of HCR by the second week of September 2015, thereby subsequently increasing its stake to 86.38 per cent. In July 2014, MHRIL had first announced a definitive agreement to acquire 18.8 per cent of HCR shares with a right to increase ownership over two years. This was increased to 23.3 per cent in November 2014. In June 2015, MHRIL had announced the exercise of the option to increase its stake in HCR up to 88 per cent, subject to customary regulatory approvals in different countries.
Commenting on this development, Arun Nanda, chairman, Mahindra Holidays said, “It gives me pleasure to announce that we have increased our stake in Holiday Club Resorts to 83.20 per cent. We will further make a fresh investment of 10 million Euros to increase stake to 86.38 per cent. This is an immense achievement since it turns us into the largest vacation ownership company based outside USA, which is a first for an Indian company.”
Kavinder Singh, managing director and CEO, Mahindra Holidays said, “We are excited about the prospect of deriving immense synergies between the two leaders in their respective markets. With this acquisition we will be able to offer Club Mahindra’s 186,000 and HCR’s 50,000 members wider holidaying options through the combined network of resorts of both the companies.”