Orient-Express Hotels subject to Tata Group takeover bid

 

Owned by the Tata Group, IHC is India’s biggest hotel operator. The offer for Orient-Express stands at $12.63 per share for the 93 percent of the US-listed company that it does not already own. This represents a 40 percent premium on Orient-Express’ closing price on Wednesday.

"We believe this premium cash offer represents a compelling value proposition for the company shareholders, especially in light of the current fragile state of the global economy and the lack of clarity about the prospects for recovery,” IHC said in a letter to Orient-Express, a copy of which was filed with the US Securities and Exchange Commission.

IHC has added that if acquired, the new Orient-Express Hotels will continue to remain an independent company. At present it operates 46 luxury hotels in 23 countries.