Tata Realty and Infrastructure is looking at buying a significant stake in International Amusements Ltd (IAL), the promoters of the country’s first theme amusement park, Delhi?s Appu Ghar. In the proposed deal, Tata Realty would buy out the stakes owned by private equity investors?DE Shaw, IDFC and IL&FS?for around Rs 400 crore. The IAL is a closely held company in which significant stakes are held by these three firms, of which major shareholder DE Shaw, a New York-based hedge fund, wants to exit the business. The hedge fund had made the investment in 2008, a first ever such major investment by it in the amusement business. The balance stake is held by Gian Vigeshwar.
When contacted, Tata Realty CFO Kishore Saletore and IAL promoter Giam Vigheshwar denied the report of being in any talks for a stake sale. However, people in the know of things said DE Shaw has been looking for an exit as going by its nature of business in India, it does not want to lock its capital in this business for long. Later, the other two infrastructure finance firms?IDFC and IL&FS ?also expressed the desire to exit from the venture.
When contacted by FE, Anil Chawla, DE Shaw?s head of private equity business in India, said, ?We will not comment on our operations.? The IAL was incorporated in 1984 with its primary object to conceptualise and set up India’s first amusement park?Appu Ghar. Spread over 15.5 acre, it used to house 20 rides in its premises till last year when the Supreme Court took away the land for developing its annexe.
Apart from Appu Ghar, IAL and the country’s second largest real estate firm Unitech have two different 50:50 JVs ? International Amusement Parks Pvt (IRPPL) and Unitech Amusement Parks?for running amusement parks in Noida and Rohini in Delhi. The two SPVs have been formed to carry out the implementation of the projects, IRPPL and UAPL. The joint venture companies hold 50: 50 share in both the SPV’s. The IAL has also been awarded contracts to set up amusement parks in Jaipur and Gurgaon.