CCI Approves Acquisition And Internal Restructuring In Lemon Tree Group

Coastal is an investment holding company incorporated in the Netherlands and is described as wholly owned and managed by Warburg Pincus Group. LTH is described as a hospitality company catering to a wide range of customers from value conscious travellers to premium business and leisure seekers. FHL is identified as a subsidiary of LTH that owns and leases hotels directly and through its subsidiaries.

The entities involved in amalgamation and demerger comprise Hamstede Living Private Limited, Carnation Hotels Private Limited, Canary Hotels Private Limited, Oriole Dr. Fresh Hotels Private Limited, Manakin Resorts Private Limited and Sukhsagar Complexes Private Limited. These entities are wholly owned subsidiaries of LTH and are active in the hotel sector in India. The notified combination therefore concerns integration and internal reorganisation within the Lemon Tree Hotels group as well as the external acquisition by Coastal.

Ms Ila Dubey, Ms Lillette Dubey, Spank Management Services Private Limited and Sparrow Buildwell Private Limited are identified as promoters or part of the promoter group of LTH. The Commission has indicated that a detailed order will follow, which will set out any conditions or further steps required to give effect to the transaction. The regulatory approval marks a procedural milestone for the parties while the finer aspects of implementation await the forthcoming order.