The Competition Commission of India (CCI) has approved ITC Ltd’s plan to spin off its hotel business into a separate company. This new company will be called ITC Hotels Ltd, and its shares will be traded on the stock exchanges.
Under this plan, ITC’s hotel business will be transferred to ITC Hotels Ltd, a new subsidiary fully owned by ITC. After the demerger, ITC will keep a 40% stake in ITC Hotels, while the other 60% will be owned by ITC’s existing shareholders.
ITC is a large Indian company with businesses in various sectors, including fast-moving consumer goods (FMCG), hotels, paperboards, packaging, and agriculture.
According to ITC, this demerger is just an internal restructuring and will not change the competitive landscape of the market.
The CCI announced its approval on social media, stating, “Commission approves demerger of Hotels Business of ITC Ltd to its wholly-owned subsidiary ITC Hotels Ltd.” In July 2023, ITC had revealed its plan to create ITC Hotels Ltd as a wholly-owned subsidiary to manage its hotels and hospitality business.
ITC Hotels, founded in 1975, is known as a leading chain of luxury hotels in India, with over 115 hotels in more than 80 locations across six different brands.
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