News:

Viceroy Hotels to build hotels at Chennai:

Viceroy Hotels Ltd. said on Tuesday that it plans to build a five star deluxe category hotel at Chennai with a project cost of Rs4.6bn. It will also construct a star category hotel at Bangalore with a project cost of about Rs1.6bn.

Meanwhile, the company has decided to issue 81,71,545 equity shares of Rs10 each at a premium of Rs 77.50 per share on a private preferential basis. As part of this equity placement, Viceroy Hotels will allot 1mn shares to Mumbai-based proprietary investor Rakesh Jhunjhunwala. Post this allotment, Jhunjhunwala's stake in Viceroy Hotels will be 14% of the paid-up capital of Viceroy Hotels.

The Board of Directors also took note of the proposal received from JW Marriott, USA to take the Chennai property on a management contract. The Board authorized the company's Managing Director to discuss the terms and conditions and sign the agreement with JW Marriott.

The Board also authorized the Managing Director to explore the possibility of signing a franchisee agreement/management contract with Marriott International Inc., USA for the Bangalore hotel.

Viceroy Hotels will also issue 78,28,455 warrants of Rs10 each at a premium of Rs77.50 apiece to be convertible into equity shares not later than 18 months from the date of allotment on a private preferential basis.

To place the necessary resolution under section 81 (1A) of the Companies Act 1956 at the Annual General Meeting (AGM) of the company's shareholders to be held on December 20.

The Board approved to merge all group entities with landed properties into the company and consolidate the restaurant businesses into a new entity which would be a wholly owned subsidiary of the company, Viceroy Hotels said.