Real estate investment arm of JP Morgan Chase is likely to pick up about 18 per cent stake in Core Hotels Ventures for Rs 100 crore with the Foreign Investment Promotion Board clearing the proposal.
The proposal of J P Morgan India Property Mauritius Company II will now go to Finance Minister P Chidambaram for final clearance.
Core Hotels Ventures is engaged in providing project management and hotel maintenance services. It is also building two hotels in Hyderabad.
According to sources, J P Morgan India Property Mauritius Company II has sought approval to subscribe to 1.42 crore share of Rs 10 each of Core Hotels Ventures at a price of Rs 70 per share for a total consideration of about Rs 100 crore.
Last year, Core Hotels got FDI from Indus Hotels Reality (Mauritius) Ltd which picked up 12.8 per cent stake. The company was given about 1.01 crore shares.
VBC Finance and Leasing and Maha Hotel Projects Pvt Ltd each hold 34.53 per cent stake in Core Hotels which has existing paid-up capital of Rs 24.12 crore.
J P Morgan Chase is engaged in diverse financial service activities, including asset management, investment banking, private banking and securities services.
Source: Market Watch