Thread by @BiIndia

#OYO vs #Zo – Zostel claims victory while the #RiteshAgarwal-led firm says there’s still room to win

businessinsider.in/business/start…

By @SanchitaDash

@SanchitaDash After a three-year long battle, the legal verdict on #OYO Hotels and Homes and #ZoHostels is out, but both companies continue to sing their own tunes.

@SanchitaDash The dispute was over the merger between #OYO and #ZoHostels, where the latter said it was denied its 7% shareholding in Oravel Stays Pvt. Ltd, the parent company of the #RiteshAgarwal-led OYO.

@SanchitaDash The Arbitral Tribunal comprising former Chief Justice of India AM Ahmadi said that Zo Rooms’ parent Zostel Hospitality Pvt. Ltd was entitled to claim relief and costs in the case, but acknowledged that definitive agreements of the deal weren’t executed.

#OYO #ZoHostels

@SanchitaDash Zo Rooms, which was a hotel aggregator founded by Zostel founders, claimed victory in the case saying that the agreement between #OYO and #Zo was binding.

@SanchitaDash However, #OYO refuted the claims and is currently evaluating legal remedies to challenge the award. The hospitality firm, valued at $9 billion, said that even with the legal battle, #Zo ‘continues to misrepresent and latch on to OYO’.

@SanchitaDash #OYO said that the arbitration hasn’t given any direction for issuance of shares as the definitive agreement was neither agreed upon nor consummated and therefore closing conditions were far from being achieved.

#Zo

@SanchitaDash “The Tribunal has ruled and categorically acknowledged that the definitive agreements, which are extremely important documents for any M&A transaction, were neither finalised nor agreed upon,” read OYO’s statement.

#OYO #Zo