Tata Group-owned Indian Hotels Company (IHC) has launched a takeover bid for luxury hotel chain Orient-Express Hotels in a bid to expand its international presence.

IHC currently holds approximately a 7% stake and is has offered $12.63 per share for the remaining 93% of the US-listed company, according to reports.

This values Orient Express at almost $1.9 billion. This represents 40% premium to the closing price of Orient Express on Wednesday.

The bid was launched after Orient-Express indicated it would “not be interested” in an equity investment.

“We believe this offer is in the best interests of Orient-Express Hotels and its shareholders, and deserves careful consideration by your board of directors,” IHC said in a letter to Orient-Express.

“We believe this premium cash offer represents a compelling value proposition for the company shareholders, especially in light of the current fragile state of the global economy and the lack of clarity about the prospects for recovery.”

IHC revealed that Orient-Express Hotels would remain an independent company, should an acquisition go ahead.

Orient Express Hotels revealed it would evaluate the proposal carefully and “respond in due course in accordance with the best interests of the Orient-Express Hotels and its shareholders.”

Indian Hotels Company operates 99 hotels in 56 locations across India and 16 international hotels including the Pierre Hotel in New York.

Orient-Express operates 46 luxury hotels, restaurants, trains and river cruises in 23 countries.