Diversified entity ITC on Thursday said it has received shareholders' approval to demerge ITC Hotels into a separate entity.
Shareholders of ITC, in a virtual meeting held on Thursday through video conferencing/other audio-visual means, approved the resolution for the scheme of arrangement between ITC Ltd and ITC Hotels Ltd, the Calcutta-headquartered firm said in a regulatory filing.
The proposal "has been approved and passed by the requisite majority of the Members, pursuant to Section 230(6) of the Companies Act, 2013", it added.
The meeting was called pursuant to the directions of the Kolkata Bench of the National Company Law Tribunal (NCLT) dated April 22, 2024.
Last year in July, ITC announced demerging its hotel business by incorporating as a wholly-owned subsidiary ITC Hotels Ltd.
The scheme was approved a month after in August, which will create a new wholly-owned subsidiary ITC Hotels Ltd, 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, it said.
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, the company had earlier said.
As per the scheme, investments in hospitality entities forming part of the hotel business -- 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 -- will be be transferred to ITC Hotels.
Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has over 120 hotels across 70-plus locations.
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