(Updates with comments from company in third paragraph, share price in seventh.)
Nov. 30 (Bloomberg) -- Naiade Resorts Ltd. will repay more than 1 billion rupees ($34 million) of debt over the next two years as it seeks to strengthen its financial position, Chief Executive Officer Paul Jones said.
The Mauritian resorts and leisure group will also change its brand name to LUX* Island Resorts from tomorrow as part of a restructuring, Jones said in an interview yesterday in Belle Mare, on the east coast of the Indian Ocean island nation.
There is a “need to develop a brand with broad appeal to the global consumer market,” the group said in a statement on the Stock Exchange of Mauritius website today. “We will benefit from increasing numbers of visitors that arrive from emerging markets of Russia, India, China and Japan.”
Naiade’s debt stands at 4.8 billion rupees, including 500 million rupees of convertible bonds, Jones said. The owner and manager of hotels in Mauritius, Reunion Island and Maldives posted a narrower loss of 120.4 million rupees in the three months through September compared with 188.9 million rupees a year earlier.
“By June 2012 and 2013 the debt should go down by 600 million rupees and 500 million rupees respectively, and will be financed by cash that will be generated from operations,” Jones said. “We are ahead of the business plan presented last December. We are confident our results for the quarter ending 31st December 2011 will improve on last year.”
Tourism is one of the largest sources of foreign currency for Mauritius. The industry’s income for the nine months through September rose 7 percent to 30.15 billion rupees, according to Bank of Mauritius data.
Naiade was unchanged at 26.40 rupees by 11:40 a.m. in Port Louis, the capital, and has gained 3.5 percent this year.
--Editors: Gordon Bell, Alastair Reed
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