 "Mahindra Holidays buys 18.8% stake in Finnish co for 13mn")
Mumbai: Mahindra Holidays today said it has acquired 18.8 percent stake in European vacation ownership firm Holiday Club Resorts Oy, Finland, for euro 13 million.
“We today signed the definitive agreements with the shareholders of Holiday Club Resorts Oy Finland to initially acquire 18.8 percent stake of its shares with a rights to increase our ownership over a period of two years,” Mahindra Holidays Chairman Arun Nanda told reporters here.
This initial acquisition will be completed in a month’s time subject to required regulatory approvals, he said.
The company will make an upfront payment of euro 3 million and the rest euros 10 million later, he added.
“This acquisition is part of a larger vision to widen our international footprint. We are excited at the prospect of expanding in Europe and the Middle East along with Holiday Club.
We are confident that synergies from this acquisition will fuel and propel our future growth,” Nanda said.
Nanda further said as part of the deal initially Mahindra Holidays will have one member on the entity’s board.
Holiday Club has a membership base of over 50,000 families and is a leading leisure brand in Europe. Once full ownership is achieved, the combined entity has the potential to become the largest vacation ownership company in the world, outside the United States.
It has an efficient sales and marketing organisation in addition to strong core competencies in the design of holiday homes and apartments, spa hotels and resort management.
Holiday Club Resorts Oy (Holiday Club) has 32 resorts, of which 24 are located in Finland, two in Sweden and six in Spain. Seven of these resorts have spa hotels with indoor water parks.
Besides, the Holiday Club has also recently started selling fractional membership, a concept that has been well received by its European clients.
“We are excited about the various development opportunities and synergies that the collaboration of two market leaders will bring about. We look forward to prospecting new opportunities to expand further in Europe,” Holiday Club CEO Vesa Tengman said.
The proposed acquisition will enable Mahindra Holidays to make significant inroads into the European markets and to leverage Holiday Club’s expertise in the vacation ownership model, as well as its strong technology platform and talent pool.
Mahindra Holidays & Resorts India is a leading player in the leisure hospitality industry offering holidays primarily through vacation ownership memberships. The company has 171,000 vacation ownership members and operates 41 resorts across India and abroad.
PTI
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