On Wednesday, ITC Ltd, which is demerging its hotel sector starting in January 2025, announced that it has purchased shares in competing hospitality brands Oberoi and Leela from Russell Credit Ltd, its wholly-owned subsidiary.
“The company today acquired 2.44 per cent of the share capital (comprising 1.52 crore equity shares of ₹2 each) of EIH and 0.53 per cent of the share capital (comprising 34.60 lakh equity shares of ₹2 each) of HLV from RCL,” ITC said in a regulatory filing.
It further stated that with such an acquisition, ITC’s combined stake in EIH and HLV amounts to 16.13 per cent and 8.11 per cent of their paid-up share capital, respectively.
“The acquisition of shares was carried out at book value in the books of RCL,” it said.
On October 24, the ITC board gave its approval for EIH and HLV’s shares to be consolidated under the business.
HLV Ltd owns and runs The Leela Mumbai, whereas EIH owns and operates upscale luxury hotels and cruise ships under the “Oberoi” and “Trident” brands.
In addition, ITC disclosed in a different filing that the business and ITC Hotels Limited (ITCHL) had reached a mutual agreement to set January 6, 2025, as the record date for identifying the firm’s shareholders to whom equity shares of ITCHL would be distributed.
ITC, a company based in Kolkata, announced on Tuesday that all requirements for the demerger of its hotel division have been “fulfilled” and that the plan will go into effect on January 1, 2025.
The National Company Law Tribunal (NCLT), which approved the agreement between ITC and ITC Hotels on October 4, is one of the regulatory approvals that the company has previously obtained.
The demerger of ITC Hotels into a distinct company has previously received approval from ITC’s shareholders.
In order to manage its hotels and hospitality operations, ITC Hotels Ltd. will be established as a new wholly-owned subsidiary.
According to the demerger plan, ITC Hotels will give equity shares to ITC shareholders directly in a way that allows ITC shareholders to own roughly 60% of the company directly, in proportion to their ownership investment in ITC, with the other 40% remaining to stay with ITC, the statement stated.
Bay Islands Hotels Ltd., Fortune Park Hotels Ltd., Landbase India Ltd., Srinivasa Resorts Ltd., WelcomHotels Lanka Pvt Ltd., Gujarat Hotels Ltd., International Travel House Ltd., and Maharaja Heritage Resorts Ltd. are among the hospitality companies that will transfer their investments to ITC Hotels by the schemes.
ITC Hotels, the leading network of luxury hotels in India, was founded in 1975 and currently operates 140 hotels in more than 90 locations.
On Wednesday, ITC Ltd.’s shares closed at ₹470.65 per on the BSE, up 0.17 per cent from the previous close.
