Warburg Pincus to buy APG’s 41 pc stake in  Lemon Tree...

Key Highlights

• The company’s board has also approved execution of an agreement providing for a primary investment of up to Rs 960 crore by Warburg Pincus in tranches, to support the future growth of Fleur, which will be listed separately on the exchanges.
• In a regulatory filing, Lemon Tree said the strategic reorganization and investment from Warburg in Fleur will unlock long-term shareholder value by creating two focused, high-growth, and large-scale platforms.
• The proposed reorganization will create two clearly differentiated and complementary platforms: Lemon Tree Hotels Limited, as a pure-play, asset-light hotel management and brand platform; and Fleur Hotels Limited, as a large-scale growth-oriented hotel ownership platform with development capabilities and an attractive pipeline.
• The respective boards of Lemon Tree and Fleur approved a composite scheme of arrangement designed to simplify the group structure, enhance strategic focus, and unlock long-term value for shareholders, it said.
• The scheme is subject to regulatory and shareholder approvals.