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The board of directors of Eraaya Lifespaces, the largest hotel company in the US, approves the US company’s capital acquisition and fundraising

Posted on by darion

The company also consents in principle to obtaining financial resources to finance business opportunities and expand the company’s long-term resources.

The board of Eraaya Lifespaces, a major hotel company, approves the acquisition of a US company and a fundraising. Photo: Canva

The board of hospitality major Eraaya Lifespaces informed stock exchanges that the company’s offer for 100 percent stake in US-based Ebix Inc. for Rs 3,009 crore has been approved. On June 27, the US Bankruptcy Court allowed the reorganization plan to be sent to creditors for a vote and scheduled a hearing to consider the approval of the plan for July 30, 2024.

The company’s board of directors, at its meeting held on June 29, noted that “the acquisition will be implemented through the Ebix reorganization plan proposed in the Chapter 11 proceedings, which is the subject of ongoing negotiations between the consortium, Ebix and Ebix’s creditors and other stakeholders.”

The company also grants in-principle approval to raise funds to fund business opportunities and expand the company’s long-term resources. “To support further growth, fund business opportunities and expand the company’s long-term resources, in-principle approval has been granted to raise up to $150 million through the issuance of securities through a private placement, preferential allotment, Qualified Institutional Placement, proper placement, further public offering in one or more tranches or any combination thereof,” the company said in a statement.