Mumbai / IN. (ihc) India Hospitality Corporation (IHC) announced that its controlling shareholders, Navis Capital Partners and Hayground Cove Asset Management, have committed to invest an aggregate of an additional 75 million USD in the company. «Given IHC´s strong capital structure and cash position, combined with strategic commitments from Hayground Cove and Navis, IHC is now very well positioned to capitalize on the wealth of opportunities India´s hospitality and travel sectors provide», said Jason Ader, Chairman of India Hospitality Corporation and CEO of Hayground Cove.
Reaffirming their commitment to IHC and their enthusiasm for these growth opportunities, executives from Navis and Hayground Cove will play increasingly active roles at the Board and operating company level. Further strengthening the working partnership, the Company announced that IHC´s Board of Directors approved the appointment of current director and interim Chief Executive Officer Richard Foyston, a founder and Managing Director of Navis, as IHC´s Deputy Chairman. Foyston: «We are fully confident in the Company and believe that it is uniquely positioned to become a leader in the rapidly growing Indian hospitality marketplace. We are pleased to invest further in IHC and share in what we believe will be its many successes going forward. We are pleased to be making this investment together with our partners at Hayground Cove».
The investment from Navis and Hayground Cove comes approximately four months after the closing of IHC´s acquisition of Navis-owned Mars Restaurants Private Limited and SkyGourmet Catering Private Limited for 110 million USD, in which Navis had retained an option to invest up to 75 million USD back into India Hospitality. The revised terms of the option allow both sponsors to invest 75 million USD in IHC but now as a staged investment which more closely matches the Company´s need for capital. Hayground Cove and Navis will acquire units (of one ordinary share and two warrants) for an immediate equity investment of 28’125’000 USD. With the warrant exercise, the total investment will equal 75 million USD. The purchased units will be subject to a one-year lockup agreement from the date of issuance.
With the completion of the investment, Navis and Hayground Cove will collectively own approximately 15,5 million shares in India Hospitality, representing 53 percent of the basic shares outstanding before the exercise of warrants. In view of its reinvestment, Hayground Cove´s commitment to exercise up to 4’000’000 warrants representing 20’000’000 USD, as represented in the proxy statement relating to the acquisition of SkyGourmet and Mars Restaurants, is no longer required and has been terminated.
