Mumbai, India (June 10, 2015) — The Investment Committee of the Board of Directors of Mahindra Holidays & Resorts India Limited (MHRIL), India’s leading leisure hospitality provider, yesterday approved the exercise of its option to increase its stake in Holiday Club Resorts, Oy, Finland (HCR) up to ~88%.
Holiday Club Resorts Oy, Finland is Europe’s leading vacation ownership company, with 30 resorts in Finland, Sweden and Spain.
The Company presently owns 23.3% of HCR and with the exercise of the call option, the shareholding of MHRIL in HCR can go up to 88%. The balance 12% are primarily held by the Management. The investment required for this 64.7% stake is Euro 28 million. MHRIL would make this investment through its overseas subsidiaries. The deal is expected to be completed in a 2-3 month time-frame, subject to customary regulatory approvals in different countries.
In addition to the above investments MHRIL may invest an additional up to 10 million euros in Holiday Club in the form of equity/loan, or in any other manner, to finance the growth of the company in the near future.
Commenting on this development, Arun Nanda, Chairman, Mahindra Holidays and Resorts India Limited, said, “I am extremely pleased that Mahindra Holidays has decided to exercise its option to increase its stake in Holiday Club Resorts, Finland up to ~88%, well ahead of the exercise period deadline of 2016. Our experience of working with the local management of Holiday Club over the last one year has given us the conviction that they are the right partner for our growth strategy in Europe and the Middle East. With this, MHRIL together with Holiday Club will become the world’s largest vacation ownership company based outside the United States.”
Kavinder Singh, Managing Director and CEO, Mahindra Holidays, also commented on the transaction, “With the increase of stake in Holiday Club, we see a huge potential for synergy between the two market leaders in the areas of technology, new products, and member services. This acquisition will further strengthen Club Mahindra’s proposition of providing leisure family holidays at unique destinations. Our 1.83 lac members will now have an added choice to visit HCR’s resorts in Europe, alongside our existing 45 resorts in India and abroad”.
Commenting on the development, Vesa Tengman, Chief Executive Officer, Holiday Club Resorts Oy, Finland, said, “I am glad that Mahindra Holidays has decided to exercise the option to increase its ownership in Holiday Club Resorts. I believe that the coming together of the two local market leaders will provide significant synergies. Our management is excited about all the opportunities that will come along with the deeper cooperation with Mahindra Holidays”.
ABOUT MAHINDRA HOLIDAYS & RESORTS INDIA LIMITED
Mahindra Holidays & Resorts India Limited (MHRIL), India’s leading player in the leisure hospitality industry, offers quality family holidays primarily through vacation ownership memberships. While Club Mahindra is the flagship brand, the other brands offered by the company are – Club Mahindra Fundays and Svastha Spa. As on March 31, 2015, MHRIL has ~183,000 vacation ownership members and operates 45 resorts across India and abroad.
ABOUT HOLIDAY CLUB RESORTS, Oy
Established in 1986, Holiday Club Resorts (HCR), Oy Finland, is one of Europe’s largest vacation ownership companies in terms of new enrolments. Currently, the company owns 30 resorts of which 22 are in Finland, including six Spa Hotel resorts, two in Sweden, six in Spain, five in Gran Canaria and one in Costa Del Sol. All the spa hotels have indoor water parks. Three of their resorts have golf courses and they have three indoor theme parks in Finland and one outdoor theme park in Gran Canary for children called Angry Bird Activity Park. The company has sales offices in Finland, Sweden, Spain & Russia. The company is credited with successfully launching Fractionals as a product and has extensive experience selling RCI points. The company has a membership base of ~50,000 members and over ~1,100 companies own their timeshares.
The Mahindra Group focuses on enabling people to rise through solutions that power mobility, drive rural prosperity, enhance urban lifestyles and increase business efficiency.
A USD 16.9 billion multinational group based in Mumbai, India, Mahindra provides employment opportunities to over 200,000 people in over 100 countries. Mahindra operates in the key industries that drive economic growth, enjoying a leadership position in tractors, utility vehicles, information technology, financial services and vacation ownership. In addition, Mahindra enjoys a strong presence in the agribusiness, aerospace, components, consulting services, defence, energy, industrial equipment, logistics, real estate, retail, steel, commercial vehicles and two wheeler industries.
In 2014, Mahindra featured on the Forbes Global 2000, a comprehensive listing of the world’s largest, most powerful public companies, as measured by revenue, profit, assets and market value. The Mahindra Group also received the Financial Times ‘Boldness in Business’ Award in the ‘Emerging Markets’ category in 2013.
PRESS RELEASE SOURCE: Mahindra Holidays & Resorts India Limited
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