Last checked at 22 Jan 2009 17:45
IHC's Credit Line Increased by $4 Million to Fund Expansion of Air Catering Business
The Company is also in Advanced Discussions with Investors to Raise Further Funds to Fuel Hotel Management and Restaurant Business Growth
LONDON, Jan. 22 -- India Hospitality Corp. today announced that one of India's leading banks, State Bank of India, has increased its existing credit line to the company by approximately $4 million to help fund the company's strategic expansion plans for its air catering business.
The management at IHC is also in advanced discussions with several institutional investors to raise additional funds for the company to be deployed towards certain growth initiatives of its hotel management and restaurant businesses, although there can be no guarantee that such discussions will ultimately lead to further funding being made available.
"We believe additional capital will allow us to leverage the growth opportunities that exist across the air catering, hotel management and restaurant business in India," said Chief Executive Officer Ravi Deol. "IHC has a scalable business model with inherent synergies across the businesses. Despite the recent market slowdown, we believe significant opportunities exist today that should provide long-term value to IHC."
As part of its growth strategy, IHC's Indian subsidiary Mars Hotel and Restaurant Pvt. Ltd. (which owns and operates Gordon House Hotels, an emerging four-star boutique hotel brand) continues to aggressively work towards signing hotel management contracts in the largest cities in India. The company is also preparing a rollout plan for the potential expansion of its branded food retail business.
About India Hospitality Corp.
India Hospitality Corp. (IHC) is a diversified pan-Indian hospitality and leisure company. In July 2007, IHC closed on the acquisition from Navis Capital Partners and its Affiliates of India-based Mars Restaurants Private Limited, an emerging hotel and restaurant company, and SkyGourmet Catering Private Limited, an airline catering company with 2,800 employees across its facilities in India.
Deutsche Bank AG is authorised under German Banking Law (competent authority: BaFin - Federal Financial Supervising Authority) and with respect to UK commodity derivatives business by the Financial Services Authority; regulated by the Financial Services Authority for the conduct of UK business. Deutsche Bank is acting exclusively for IHC and no-one else in connection with the acquisition and related transactions and other matters referred to in this announcement and will not be responsible to anyone other than IHC for providing the protections afforded to clients of Deutsche Bank AG nor for providing advice in relation to the acquisitions and related transactions or any matter referred to in this announcement.
Deutsche Bank is IHC's nominated adviser and broker for the purposes of the AIM Rules for Companies. Its responsibilities as IHC's nominated adviser and broker under the AIM Rules for Nominated Advisers are owed solely to London Stock Exchange plc and not to IHC, any director of IHC or any other person.
No offer or invitation to purchase or subscribe for ordinary shares in or warrants to purchase or subscribe for ordinary shares or warrants of IHC is being made by this announcement.
SOURCE India Hospitality Corp.
CONTACT: Media, Harsh Wardhan, Mutual Public Relations Ltd., +91-11- 43620700; or Investor Relations, William Schmitt, ICR Inc., +1-203-682- 8200; or Nominated Adviser and Broker, Mumtaz Naseem, Deutsche Bank, +44- 20-7545-8000
vendor