ITC has said in a regulatory filing that post obtaining a no-objection from the stock exchanges, the National Company Law Tribunal (NCLT) has directed the company to call a meeting of shareholders on June 6, 2024 to consider and approve the proposed demeger of its hotel business.
ITC had filed the Scheme of Arrangement for demerger with the tribunal and the announcement of the shareholder meeting came while its quarterly earnings for the January-March quarter were anounced.
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Board Approval
The ITC board had in August last year approved the demerger of the hotels business, with an indicative timeline of listing of the new entity in about 15 months. Under the proposed demerger, the hived off company comprising the hotels business will have the license to use the ITC brand name.
The Board had said that it has considered and approved the demerger of the hotels business under a scheme of arrangement amongst ITC and ITC Hotels and their respective shareholders and creditors under Sections 230-232 and other applicable provisions of the Companies Act, 2013.
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Under the demerger, shareholders will get one share of hotels business for every 10 shares held in ITC. ITC shareholders are to hold about 60 percent direct stake in ITC Hotels (proportionate to their stake in ITC) and the remaining 40 percent stake to continue with ITC. No cash consideration is payable under the demerger scheme.
