ITC Shareholders Give Thumbs Up to Hotels Demerger

arvind@wparvind.comUpdated 12 months Ago1 Mins read12 Views

Under this demerger scheme, ITC will retain 40% ownership of ITC Hotels, while ITC shareholders will acquire the remaining 60% in proportion to their stake in the parent entity

Big Win for ITC Shareholders: 99.6% Approval for Hotel Business Split

The shareholders of ITC Ltd. have approved the demerger of its hotel business with an overwhelming majority of 99.6%, as per an exchange filing on Thursday. The statement confirmed that the resolution to approve the demerger scheme among ITC, ITC Hotels Ltd., and their respective shareholders and creditors has been passed with the required majority.

ITC is India’s third largest hotel chain, with over 100 hotels

Various investors, including the government, participated and voted to favour the demerger. In August 2023, the company announced its plans to demerge its hotel business into a separate entity. Under this demerger scheme, ITC will retain 40% ownership of ITC Hotels, while ITC shareholders will acquire the remaining 60% in proportion to their stake in the parent entity.

IIAS provides voting recommendations on shareholder resolutions of Indian listed companies

The voting occurred after Institutional Investor Advisory Services (IiAS), a domestic proxy advisory firm, opposed the demerger move. IiAS advised the firm’s shareholders to vote against the proposed demerger, stating that it only partially unlocks value.

njj — ITC decided to demerge its hotel business into a separate entity in 2023 to focus on core competencies

Following the announcement, ITC’s shares recovered from the day’s low and ended 1.4% higher at Rs 436.40, outpacing the 0.9% gains in the country’s benchmark NSE Nifty 50.