Sahara group says the $1.3 billion offer is baseless and 'devious'

NEW DELHI: Sahara group on Wednesday said that the $1.3 billion all-equity bid that it received on the previous day for its three hotels in London and New York is baseless since it seeks to value the assets lower than the market price. The Subrata Roy-led group, which owns Grosvenor House Hotel in London along with Plaza and Dream Downtown hotels in New York, had received the proposal from a consortium of London-based family office 3 Associates and a family office each in Saudi Arabia and United Arab Emirates.

"It is a devious attempt to benchmark the price much lower than the actual market value of the properties in order to ruin the market and disturb the sentiments of the actual bidders who are bidding at market value which is much higher. Please note it is a malicious, and non-serious act of some wrong people," said a Sahara spokesman.

Jesdev Saggar, managing director of 3 Associates said, "We have followed a process as advised by Knight Frank and our lawyers and submitted accordingly. The Roy family are within rights to reject the bid and we will choose to ignore the emotionally charged responses." Saggar said valuation was arrived at "with independent advice and within guideline set out by Supreme Court based on recent valuations published as guidance." He said property advisory firm Knight Frank had sent the bid to all parties but they had not got any response from Sahara so far. "We look forward to engaging in dialogue with the family and align our expectations," Saggar said.