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What is the story about?
Shares of Lemon Tree Hotels Ltd. gained over 4% on Wednesday, January 7, after sources in the know told CNBC-TV18 that Warburg Pincus, the Private Equity firm, is likely to acquire a meaningful stake in the hotel chain.
The deal is likely to be done in two tranches, under which, Warburg Pincus may acquire APG Strategic RE Pool's stake in Lemon Tree in the first tranche, sources said.
APG Strategic RE Pool owns 14.99% stake in Lemon Tree at the end of the September quarter. Promoters of the company have a 22% stake.
Under the second tranche of the transaction, Lemon Tree is likely to make a preferential allotment towards Warburg Pincus, the sources added.
Warburg Pincus' deal with Lemon Tree is likely to trigger an open offer for the stock.
Warburg Pincus was a significant investor in Lemon Tree Hotels and had exited its stake by 2019.
CNBC-TV18 has written to Lemon Tree, Warburg Pinus, as well as APG Strategic, and is awaiting a response to its queries.
Shares of Lemon Tree Hotels are trading 4.3% higher after the announcement, currently trading 4.4% higher at ₹157.7.
The deal is likely to be done in two tranches, under which, Warburg Pincus may acquire APG Strategic RE Pool's stake in Lemon Tree in the first tranche, sources said.
APG Strategic RE Pool owns 14.99% stake in Lemon Tree at the end of the September quarter. Promoters of the company have a 22% stake.
Under the second tranche of the transaction, Lemon Tree is likely to make a preferential allotment towards Warburg Pincus, the sources added.
Warburg Pincus' deal with Lemon Tree is likely to trigger an open offer for the stock.
Warburg Pincus was a significant investor in Lemon Tree Hotels and had exited its stake by 2019.
CNBC-TV18 has written to Lemon Tree, Warburg Pinus, as well as APG Strategic, and is awaiting a response to its queries.
Shares of Lemon Tree Hotels are trading 4.3% higher after the announcement, currently trading 4.4% higher at ₹157.7.
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