Mumbai, July 7: Mahindra Holidays today said it had acquired an 18.8 per cent stake in European vacation ownership firm Holiday Club Resorts Oy, Finland, for 13 million euros.
“We today signed the definitive agreements with the shareholders of Holiday Club Resorts Oy, Finland, to initially acquire 18.8 per cent stake of its shares with a right 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 the required regulatory approvals, he said.
The company will make an upfront payment of 3 million euros and the rest 10 million euros 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 West Asia 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 would have one member on the entity’s board.
Holiday Club has a membership of over 50,000 families and is a leading leisure brand in Europe. It 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.
Mahindra Holidays has 171,000 vacation ownership members and operates 41 resorts across India and abroad.