ITC Ltd., currently undergoing the demerger of its hotel business, announced on Thursday that its board has approved consolidating its shareholding in two key rival hospitality brands, Oberoi and Leela. ITC will acquire shares held by its wholly-owned subsidiary, Russell Credit Ltd (RCL), to strengthen its investments in these chains.
In a regulatory filing, ITC revealed plans to acquire 1.52 crore shares of EIH Ltd (the parent company of Oberoi and Trident) and 34.60 lakh shares of HLV Ltd (operator of Leela Hotels) from RCL at book value. This acquisition will increase ITC’s total shareholding to 16.13% in EIH and 8.11% in HLV. Additionally, ITC’s board has approved the acquisition of Greenacre Holdings Ltd, an unlisted subsidiary of RCL, at book value. These acquisitions are subject to the necessary approvals from RCL’s board.
This strategic move aligns with ITC’s broader plan to establish ITC Hotels Ltd, a new entity set to operate over 140 properties under six brands, including ITC Hotels, Welcomhotel, and Fortune, with the demerger receiving shareholder approval in June 2024.
Source CNBC
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