Tata Group's Indian Hotels Company (IHCL), owner of the Taj Mahal chain of hotels and resorts, on Friday said that it will not further pursue its takeover bid for luxury hospitality chain Orient-Express Hotels.
Indian Hotels Company had picked up a 10% in Bermuda-based Orient-Express for close to $211 million in September 2007, which it later brought down to 6.9%.
In 2012, the Mumbai-headquartered company had offered to acquire the outstanding 93.1% stake in Orient-Express at a 40% premium to the then market price. This was, however, rejected by the Orient-Express Hotels.
The board of directors of Indian Hotels Company, which met on Friday to consider the July-September earnings, said that the company posted a wider net loss of Rs 300 crore from a net loss of Rs 6.36 crore in the corresponding quarter last year.
The company recorded an exceptional item of Rs 287 crore which it said is on the account of a further diminution in its investment in Taj International Hotels.
Indian Hotels Company also said that some of its past investments have now declined in fair value resulting in an erosion in net worth on account of the global recessionary conditions. Indian Hotels Company had recognised an impairment of Rs 305 crore in the March quarter, it said.
Indian Hotels Company posted a mere 3% increase in its total income, which stood at Rs 391 crore during the September quarter from Rs 379 crore during the same period last year.