The board of the ITC has approved acquiring a 25% stake in Maharaja Heritage from Russel Credit. The shareholders will get one hotel company share for 10 held in the company. The indicative timeline for listing ITC Hotels is approximately 15 months, the company said.
“ITC Board approved 90,000 (Ninety Thousand) equity shares of Maharaja Heritage Resorts Limited (“MHRL”), an unlisted company, representing 25% of MHRL’s share capital from Russell Credit Limited (“RCL”), a wholly-owned subsidiary of the Company. The proposed acquisitions by the Company, as stated above, shall be subject to obtaining relevant approvals from the Board of Directors of RCL, and execution of transaction documents (Agreement, etc.) in due course,” the company said in a stock exchange filing.
Swap ratio at 1:10
ITL Limited said that shareholders will get one equity share of ITC Hotels for every 10 shares held in the demerged company. The company said that the scheme of demerger is on a going concern basis.
“Upon this Scheme becoming effective and in consideration of the transfer and vesting of the Demerged Undertaking from ITC to the Resulting Company in terms of this Scheme, the Resulting Company shall, issue and allot equity shares, to all the members of ITC, holding fully paid-up equity shares on the Record Date in the following manner: “for every 10 (Ten) Ordinary Shares of the face and paid-up value of Re. 1 each held in the Demerged Company, 1 (One) equity share of the face and paid-up value of Re. 1 in the Resulting Company,” the company said in the regulatory filing.
Hotels Business to chart its own growth path
The company said that the Hotels Business of ITC has matured over the years and is well poised to chart its own growth path and operate as a separate listed entity in the fast-growing hospitality industry whilst continuing to leverage ITC’s institutional strengths, strong brand equity, and goodwill. Therefore, the Scheme is being proposed to segregate the Hotels Business from the Remaining Business of ITC and demerge it into the Resulting Company. It clarified that there will be no change in the shareholding pattern of ITC.
After the implementation of the scheme, ITC’s shareholders will retain an approximate 60% ownership stake in the Resulting Company, aligning with their respective ownership percentages in ITC. The remaining portion, constituting approximately 40% of the Resulting Company’s stake, will continue to be under the ownership of ITC, the company said.
