MC: SEBI directs Hotel Leela to make additional disclosures to shareholders on asset sale

23 July 2019: Markets regulator Sebi on July 23 directed Hotel Leela Venture Ltd to make additional disclosures to its shareholders on sale of assets. Besides, the watchdog would initiate adjudication proceedings against JM Financial Asset Reconstruction Company (JMF ARC) for failing to comply with provisions of takeover norms.

The ruling has come on complaints received from minority shareholders of Hotel Leela alleging violations in relation to postal ballot notice, dated March 18, wherein the company had sought approvals regarding sale of assets to Brookfield.

At the end of June, JMF ARC owned 26 per cent stake in Hotel Leela.

The regulator had received ITC and LIC — minority shareholders in Hotel Leela — alleging violations by promoters and JMF ARC in respect of asset sale transaction mentioned in the postal ballot notice.

In its order, Sebi said Hotel Leela should provide various additional disclosures in the postal ballot notice, including all relevant details of each of the sale transactions.

Details of valuation of both asset sale transaction and additional IP transaction, including the methods adopted by the company, should also be disclosed.

During the course of the postal ballot, the valuation reports shall be kept for inspection by the shareholders of Hotel Leela, it added.

“Sebi may initiate adjudication proceedings under the Sebi Act against JMF ARC for its failure to ensure compliance with the applicable provisions of the Takeover Regulations, as deemed fit and appropriate,” the order said.

Moneycontrol reported

Categories: General News, India Bankruptcy

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