The Competition Commission of India (CCI) has approved under Section 31(1) of the Competition Act, 2002, for the acquisition of certain equity shares of Fleur Hotels Limited by Coastal Cedar Investments BV and internal restructuring of Lemon Tree Hotels Limited (LTH) group through amalgamation and demerger.
“This approval marks a significant milestone towards consummation of the proposed transactions as disclosed in the Prior Intimation. The Company will take necessary steps to complete the transactions in accordance with applicable laws,” said the Company in its exchange filing.
Coastal is an investment holding company incorporated in the Netherlands and is wholly-owned / managed by Warburg Pincus Group.
The Board of Directors of Lemon Tree Hotels Limited, on January 9, 2026, based on the recommendations of the Reorganization Committee, the Audit Committee, and the Committee of Independent Directors, considered and approved the Composite Scheme of Arrangement.
The Board has also approved the execution of the Share Purchase Agreement (SPA) by and amongst the Company, APG Strategic Real Estate Pool N.V. (APG), Coastal Cedar Investments B.V. (Investor), an affiliate of Warburg Pincus, and the Fleur Hotels Limited, for the sale of APG’s entire shareholding of 41.09% in the Transferee Company to the Investor.
Simultaneously, the Board had also approved the execution of the Shareholders’ Agreement (SHA) by and amongst the Transferee Company, the Company, Mr. Patanjali Govind Keswani, Spank Management Services Private Limited, and Coastal Cedar Investments B.V. (Investor).
The proposed reorganization is set to create two clearly differentiated and complementary platforms: Firstly, Lemon Tree Hotels Limited, as a pure-play, asset-light hotel management and brand platform; and Secondly, Fleur Hotels Limited, a current subsidiary of Lemon Tree, as a large-scale growth-oriented hotel ownership platform with development capabilities and an attractive pipeline.
Warburg Pincus also invested in the company in 2006, which supported Lemon Tree’s initial growth to become a prominent hotel brand and platform in India.
Morgan Stanley acted as the exclusive financial advisor for the proposed transaction.
