ITC has received shareholders’ approval to demerge ITC Hotels into a separate entity. The scheme was approved a month after in August, which will create a new wholly-owned subsidiary ITC Hotels, to handle its hotels and hospitality business.
Under the scheme of demerger, ITC Hotels will issue equity shares directly to the shareholders of ITC in a manner that about 60 per cent stake is held directly by ITC shareholders proportionate to their shareholding in ITC and the remaining about 40 per cent stake to continue with ITC.
The process will create a strong foundation for accelerating growth and sustained value creation by providing long-term stability and strategic support to ITC Hotels, while also instilling a sense of assurance among stakeholders, including partners and employees. As per the scheme, investments in hospitality entities forming part of the hotel business -- Bay Islands Hotels, Fortune Park Hotels, Landbase India, Srinivasa Resorts, WelcomHotels Lanka, Gujarat Hotels, International Travel House and Maharaja Heritage Resorts -- will be transferred to ITC Hotels.
ITC has business a interests in cigarettes, hotels, paperboards and specialty papers, packaging, agribusiness, packaged foods and confectionery, information technology, branded apparel, personal care, stationery, safety matches and other FMCG products.
