Lemon Tree forms JV with RJ Corp for Aurika Shillong project
LEMONTREE · price
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Lemon Tree Hotels has executed a Joint Venture Agreement with RJ Corp Limited for the Aurika Shillong project. RJ Corp will acquire 49% stake in step-down subsidiary Arum Hotels by subscribing to 47,65,394 fresh equity shares at Rs. 10 face value each. Carnation Hotels (Lemon Tree's wholly owned unit) will retain 51%. Post deal, Arum ceases to be wholly owned step-down subsidiary. Board will have equal directors from both sides. No sale of existing stake; Lemon Tree receives no cash consideration. Arum contributed zero revenue and a negative net worth of Rs. 12.97 lakhs last year.
JV with established RJ Corp group eases Lemon Tree's capital burden for Shillong project while retaining 51% control and shared execution risk. No cash inflow.