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Energy company buys 14% stake in Oberoi Hotels operator

MUMBAI India energy conglomerate Reliance Industries Ltd. has acquired a 14.1% stake in EIH Ltd., the company that operate Oberoi Hotels & Resorts.

Reliance, which is India’s most valuable company, purchased the 55.5 million shares from Oberoi Hotels Pvt. Ltd. and owner P.R.S. Oberoi for a total of US$217 million.

The share purchase does not make Reliance a majority owner of EIH, and no substantial changes to the company’s operating structure are expected as a result of the transaction.

Reliance is deep in diversification mode. The Mumbai-based company in recent months has also purchased an Internet services provider for US$1 billion, as well as a stake in a cargo airline.

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