ITC Hotels Demerger: ITC to hold meeting of ordinary shareholders on June 6 to approve scheme
ITC will convene a meeting of the company’s ordinary shareholders on June 6, 2024, to approve the proposed scheme of arrangement involving the demerger of ITC Hotels from ITC Limited into a separate listed subsidiary, the company on Wednesday said in an exchange filing.
The meeting will be held at 10:30 am India time through the electronic mode.
The move comes following an order by the National Company Law Tribunal (NCLT) to convene a meeting of the ordinary shareholders of the company.
The announcement was made after market hours and ITC shares on Wednesday ended flat on the NSE at Rs 429.40.
The board had on August 14 approved the scheme of arrangement under which the shareholders of ITC will get 1 share in the demerged hotels business for every 10 shares held in the parent company.
Once the demerger is completed following approval from shareholders, creditors, stock exchanges, Sebi, NCLT and other regulatory authorities, ITC is likely to get the new stock listed on stock exchanges in another 15 months.
ITC shareholders will directly hold about 60% in ITC Hotels in proportion to their stake in the parent company. The remaining 40% stake will continue with ITC. No cash consideration is payable under the demerger scheme.
«The scheme would unlock value of the hotels business for existing shareholders of the demerged company through independent market driven valuation of their shares in the resulting company, which will be listed pursuant to the scheme, along with the option and flexibility to remain invested
