Imagicaaworld seeks shareholders’ nod to sell Novotel Imagicaa to Juniper Hotels

Imagicaaworld Entertainment has started a postal ballot asking shareholders to approve the sale of its Hotel Novotel Imagicaa at Khopoli on a slump-sale basis. This is the next step in the theme park operator’s ₹248-crore deal to sell the property to Juniper Hotels.

The company is seeking approval through a special resolution under Section 180(1)(a) of the Companies Act, 2013, which covers the sale of the whole or substantially the whole of a company’s undertaking. The resolution also falls under Regulation 37A of the Sebi (Listing Obligations and Disclosure Requirements) Regulations. Under that rule, such a sale needs the votes of public shareholders in favour to exceed their votes against.

The postal ballot notice was sent by email on 21 October to shareholders on record as of 16 October, the cut-off date. Remote e-voting through National Securities Depository (NSDL) runs from 9 am on 22 October to 5 pm on 20 November. The company said it will announce the result on or before 22 November. It has appointed P N Parikh of Parikh & Associates, practising company secretaries, as scrutiniser.

The newspaper notice does not name the buyer or the price. Those were disclosed when the board approved the sale on 17 September. The 287-key hotel stands on about 11 acres, has a built-up area of about 2.8 lakh sq ft, and sits next to Imagicaa’s theme park and water park on the Mumbai–Pune corridor. The hotel will be sold as a going concern for a lump sum of ₹248 crore. The deal is subject to definitive agreements and statutory, regulatory and shareholder approvals.

Imagicaaworld has said the sale will strengthen its balance sheet and allow it to focus on its core entertainment business. It also said the money will help fund its next phase of growth, including parks in new locations, new attractions and indoor entertainment. Juniper plans to upgrade the hotel, which Imagicaaworld says will add to the wider Imagicaa destination. A binding memorandum of understanding was signed in the first week of October, according to a market report.

Investors were not convinced at first. On 17 September, the day the sale was announced, the stock fell as much as 4.3 per cent intraday to ₹50.70 on the NSE, amid concerns that the company would lose the hotel’s recurring revenue. The consideration is about 8.6 per cent of the company’s market capitalisation of about ₹2,885 crore that day.

The vote comes as the core parks business has had a weak quarter. Consolidated footfall fell 6 per cent year-on-year to 2.1 lakh visitors in the July–September quarter, from 2.25 lakh a year earlier. The company blamed heavy rain in July and August across its key catchment areas.

Also See: Baid Industries liquidator cuts reserve to ₹15.5 crore for Ankleshwar yarn unit; e-auction on October 30