Ambani's Reliance to buy stake in Mandarin Oriental New York

[MUMBAI] Mukesh Ambani's Reliance Industries has agreed to buy an indirect 73.37 per cent stake in Mandarin Oriental New York for US$98.15 million, the company said in a filing on Saturday (Jan 8).

Reliance Industrial Investments and Holdings, a wholly owned unit of Reliance Industries, will buy the entire issued share capital of Columbus Centre Corp, a company incorporated in the Cayman Islands, which indirectly owns the stake in the luxury hotel.

The company said it will also seek to buy the remaining stake from other owners at the same valuation. The transaction is expected to close by the end of March.

The deal follows Reliance's purchase of Stoke Park, which owns and manages a hotel, and sports and leisure facilities in Buckinghamshire, for US$79 million in April as the firm controlled by the Asia's richest man extends its streak of acquisitions to pare dependence on profits from its traditional oil refining business.

"This acquisition will add to the consumer and hospitality footprint of the group," Reliance said in a statement. Along with Stoke Park, the company also has investments in Indian hotel operator EIH and is developing a state-of-the-art convention centre, hotel and managed residences in Mumbai's key business district.

Earlier last week, the company bought a 25.8 per cent stake in Bangalore-based delivery company Dunzo for US$200 million in a move to boost its retail portfolio in one of the world's largest consumer markets.

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