Home / Business / #Brothers: London billionaires step to save fellow billionaire Subrata Ro

#Brothers: London billionaires step to save fellow billionaire Subrata Ro

The Mumbai-born, London-based billionaire Reuben Brothers have stepped into help fellow billionaire Subrata Roy.

The embattled Roy, who helms India’s Sahara Group, had been forced to put up his two prized possessions – London’s Grosvenor House Hotel and the equally luxurious Plaza Hotel in New York – for sale when Sahara slid into a legal quagmire after bonds it sold to millions of small investors were found to be illegal.

Roy has been in jail since March last year and Sahara has been struggling with a string of deals to raise more than £1 billion in bail.

Sahara on Sunday said the Reuben Brothers were in the “final stage” of taking over the properties from Bank of China which had holds the debt on the hotels.

“The deal restores Sahara’s ability to renegotiate the loan terms with the new lender, or with third parties,” the company said.

Sahara gave no further details, citing the need to protect ongoing negotiations.

Simon and David Reuben

Representatives for the Reuben Brothers were not immediately available for comment on Sunday.

David and Simon Reuben built their fortune with Russian aluminium company Trans-World Metals, but later sold out and put their money into private equity and property.

The Reubens are rarely in the public eye despite holding one of Britain’s largest fortunes. They rank 80th on the 2015 Forbes list of the world’s richest people, with an estimated wealth of $13.7 billion.

The two were born in Mumbai but made their fortune from London, where Simon went into property and his older brother David started trading in scrap metal.

India’s capital markets regulator and the Supreme Court have estimated Sahara owes as much as $7 billion to bond investors, but Sahara says it has repaid 95 percent of the amount due.



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