Advent Hotels shares zoom 17% after Rs 504 crore stake sale in subsidiary to Prestige Estates

Shares of Advent Hotels International Ltd surged 17.14 per cent in Monday's trade after the company announced the sale of a 50 per cent stake in its wholly-owned subsidiary to Prestige Estates Ltd in a deal valued at Rs 504 crore.

The stock climbed 17.14 per cent to hit a day high of Rs 164. The transaction will convert the subsidiary into a 50:50 joint venture (JV) between the two companies.

In an exchange filing, Advent Hotels said it had agreed to sell a 50 per cent stake in its wholly-owned subsidiary, Advent Convention and Hotels International Ltd (ACHIL), to Prestige Estates for an aggregate consideration of Rs 504 crore.

Following the completion of the transaction, ACHIL will cease to be a wholly-owned subsidiary of Advent Hotels. The company will continue to hold the remaining 50 per cent economic and voting rights, with the subsidiary operating as a JV.

The transaction gives Prestige Estates equal economic and voting rights in ACHIL, while Advent Hotels retains the balance stake.

The company said the partnership is linked to the development of a commercial real estate project in Mumbai.

Advent Hotels also said Valor Estate Ltd and its subsidiary, Esteem Properties Pvt Ltd, have entered into an agreement with Prestige Estates for a 21,978-square metre land parcel in Sahar, Andheri East, Mumbai.

The land, owned by Esteem Properties, has been assigned for the project. ACHIL will develop the commercial project as the special purpose vehicle.

Meanwhile, shares of Prestige Estates also climbed 2.94 per cent to hit a high of Rs 1,716.80.