Ltd, which owns Zostel Hostels and ZO Rooms, in a legal battle against Oravel Stays Pvt. Ltd, the parent of Oyo Rooms, which may lead to shareholders of ZO Rooms to now own 7% in Oyo. The term sheet executed between the two parties in 2015 promised ZO Rooms’ shareholders 7% of hospitality unicorn Oyo. According to Zostel Hospitality, ZO Rooms and Oyo had entered into talks for a merger in 2015, executing an agreement on 26 November that year. Oyo is strictly refuting the part which claims that Zostel shareholders are entitled to a stake in the company.

Source: Mint March 07, 2021 16:56 UTC