Zo Rooms Entitled to 7% Shareholding In $9 bln Valued-Oyo, A

Zo Rooms Entitled to 7% Shareholding In $9 bln Valued-Oyo, Arbitral Tribunal Holds


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An award by an arbitral tribunal in a tussle between Oravel Stays Pvt Ltd (Oyo) and start-up Zostel Hospitality Pvt Ltd (Zostel), holding that Zo Rooms is entitled to allotment of 7% shareholding in Oyo, could open the doors to what Zostel is touting as the "biggest exit in the Indian startup eco-system".
The award was passed in a 3-year old arbitration dispute between the two hospitality giants, following a merger agreement based on a "Term Sheet" in 2015. Zostel and Oyo had entered into what Zostel claimed to be a binding agreement, and Oyo claimed to be a non-binding agreement of "exploratory" nature in November 2015, under which Zostel claimed to have completed its obligations and transferred the business to Oyo.

Related Keywords

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