Clearwater Capital Partners (Cyprus) Limited, Clearwater Capital Partners Singapore Fund III a fund of Clearwater Capital Partners, LLC made an offer to acquire an additional 26% stake in Kamat Hotels (India) Ltd. (BSE:526668) for approximately INR 670 million in cash on January 11, 2012. Clearwater Capital Partners (Cyprus) Limited will acquire 4.96 million shares of Kamat Hotels at INR 135 per share after which Clearwater Capital Partners (Cyprus) Limited will hold 56.88% in Kamat Hotels after the transaction. Clearwater Capital has adequate financial resources and has made firm financial arrangements for the implementation of the offer in full out of its net worth.

The existing management of Kamat will continue with the current business of Kamat without any day-to-day intervention in operations from Clearwater Capital. The tendering period will open on March 6, 2012 and will close on March 20, 2012. The offer is delayed from its tentative schedule. The offer is conditional upon receiving statutory approvals. A committee of independent Directors has been constituted to provide recommendations on the open offer made by Clearwater Capital Partners to the shareholders of Kamat Hotels.

As of January 31, 2012, the offer is neither conditional upon any minimum level of acceptance nor it is a competitive bid. The existing management of Kamat will continue to operate and will not be changed by Clearwater Capital and also Clearwater does not intend to delist the equity shares of Kamat in the next 2 years from the stock exchange. Clearwater will finance the under the offer through internal resources and no borrowings from banks or NRIs or financial institutions are envisaged. The tender period will start from March 6, 2012 to March 20, 2012. As on January 13, 2012, the Hon'ble High Court of Bombay approved the transaction. As on December 8, 2012, the committee of independent directors of Kamat Hotels recommended its shareholders to accept the offer.

Hari Surya and Amit Kumar of Systematix Corporate Services Ltd acted as financial advisor for Clearwater Capital Partners (Cyprus) Limited and Clearwater Capital Partners, LLC. Pravin Kasare of Link Intime India Pvt. Ltd. acted as registrar, Alliance Corporate Lawyers acted as legal advisor and Ventura Securities Ltd. acted as depository bank for Clearwater Capital Partners (Cyprus) and Clearwater Capital Partners, LLC. Ernst & Young Cyprus Limited acted as accountant for Clearwater Capital Partners (Cyprus) Limited and Clearwater Capital Partners, LLC.

Clearwater Capital Partners (Cyprus) Limited, Clearwater Capital Partners Singapore Fund III a fund of Clearwater Capital Partners, LLC completed the acquisition of 9.07% stake in Kamat Hotels (India) Limited (BSE:526668) for approximately INR 230 million in cash on January 3, 2013. Clearwater received acceptances for 1.7 million Kamat shares.