The proposed combination relates to the demerger of the demerged undertaking to ITC’s wholly owned newly incorporated subsidiary, ITC Hotels.
The Competition Commission of India (CCI) on Tuesday approved the demerger of the hotel business of diversified entity ITC Ltd into a separate entity. After the completion of the demerger, shares of ITC Hotels Ltd, a new entity, will be listed on the stock exchanges.
The proposed combination relates to the demerger of the demerged undertaking to ITC’s wholly owned newly incorporated subsidiary, ITC Hotels.
Following the demerger, shares of ITC Hotels will be listed. ITC will continue to hold a 40 per cent stake, while the remaining 60 per cent will be held by the conglomerate's shareholders, according to a notice on the CCI website. ITC has diversified businesses in India spanning from FMCG, hotels, paperboards, paper and packaging, and agri-business.
The proposed combination is only an internal restructuring exercise which will not result in any change in market dynamics, ITC said in the notice.
"Commission approves demerger of Hotels Business of ITC Ltd to its wholly-owned subsidiary ITC Hotels Ltd," according to a post by CCI on X (formerly Twitter). In July 2023, leading conglomerate ITC said it will demerge its hotel business by incorporating wholly-owned subsidiary ITC Hotels Ltd.
The company's board has also approved the incorporation of the wholly-owned subsidiary ITC Hotels Ltd, which will handle its hotels and hospitality business, it added. Launched in 1975, ITC Hotels, India's premier chain of luxury hotels, has over 115 hotels in 80-plus destinations across six distinct brands.