Mahindra Holidays Acquires 18.8% Stake in Holiday Club Resorts Oy
Mahindra Holidays Acquires 18.8% Stake in Holiday Club Resorts Oy
Mahindra Holidays has announced that it has acquired an 18.8% stake in the European vacation ownership firm Holiday Club Resorts Oy Finland for 13 million euros. A definitive agreement has been signed with shareholders of Holiday Club Resorts Oy in Finland for the initial acquisition of 18.8% stake of shares with rights to increase ownership over two years, according to Mahindra Holidays Chairman Arun Nanda.
The initial acquisition has to be finished in one month's time subject to regulatory approvals. The company will pay 3 million euros upfront and the remaining 10 million will be paid later. Nanda also said that the acquisition is just a segment of the larger vision for the purpose of widening the international footprint. The group is keen to expand in Europe and the Middle East along with Holiday Club.
There is confidence that synergies from this acquisition will be responsible for furthering the growth of the group, according to Nanda. As part of the deal, Mahindra Holidays will consist of at least one member on the entity's board. Holiday Club has a membership base of around 50,000 families and is a key European leisure brand. Once the complete ownership has been achieved, the combined entity has the potential for transforming into the largest vacation ownership company across the globe.
It comprises an efficient and effective sales and marketing organisation along with core competencies for the design of holiday homes, apartments, resort management and spa hotels. Holiday Club Resorts Oy (Holiday Club) has around 32 resorts of which 24 are located in Finland.
The remaining 2 are in Sweden and 6 are in Spain. Of the resorts, 7 are spa hotels with indoor water parks. The Holiday Club has also started selling fractional membership which is a concept that has been enthusiastically received by European clients.
There is excitement about the new development opportunities and synergies that are going to occur with the collaboration of 2 market leaders for prospecting new opportunities for further expansion in Europe, according to Holiday Club CEO Vesa Tengman.
The proposed acquisition is ideal for enabling Mahindra Holidays to make significant forays into the European markets. This is ideal for leveraging the expertise of the Holiday Club in the vacation ownership model. Apart from this, the group will also benefit from a strong talent pool and technology platform, according to media reports.
Mahindra Holidays & Resorts India is a key player in the leisure hospitality industry across the globe. It has 171,000 vacation ownership members and 41 resorts across India and the globe.