The Securities and Exchange Board of India (SEBI) has barred Hotel Leelaventure from selling its four high-profile hotels and other assets to Canadian investment fund Brookfield Asset Management.
The development comes after ITC moved the National Company Law Tribunal (NCLT) against Leela alleging "oppression and mismanagement". ITC also claimed that the deal between Leela and Brookfield is against the company's and shareholders' interests. SEBI has received representations from ITC in the matter and mentioned this in its letter to Leela.
ITC's plea was mentioned before the Mumbai bench of the NCLT, which has posted the matter for hearing Wednesday, Hotel Leelaventure said in a regulatory filing Tuesday.
"Representations/allegations against HLVL, as received by Sebi in relation to the issue, concerns the interest of the investors in the security market...While representations are being examined by Sebi, in paucity of time involved and in the interest of investors in securities, you are advised to ensure that none of the transactions proposed in the postal ballot notice dated March 18 are acted upon till further directions from Sebi," Hotel Leelaventure said in the filing.
ITC along with the petition to NCLT had also filed two applications seeking a waiver of the requirement of the minimum threshold of 10 per cent shareholding, it added. As per the latest information available on bourses, ITC holds 7.92 per cent stake in Hotel Leelaventure.
The cash-strapped hotel on March 18 had announced the sale of its four hotels located in Bengaluru, Chennai, Delhi and Udaipur, and a property to Canadian investment fund Brookfield for Rs 3,950 crore. It has also sought shareholders approval, the voting for which is scheduled to end on April 24.