Budget hotel operator Red Planet Hotels has bought a 16.05% holding in Tony Fernandes’s Tune Hotels, the Bangkok-based company announced earlier this week. The investment comes after Red Planet recently raised $90 million in a two-stage round of fundraising, and gives it a seat on the Tune board.
The total cost of the transaction is undisclosed, and the purchase of the existing 9,975,038 shares will be through 20% cash and 80% shares. It is the biggest single corporate investment by the firm in its two-year history. Red Planet is already a significant franchisee of the Tune brand across Southeast Asia.
“The investment represents Red Planets Hotel’s pledge...
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