June 6 (Punjab Khabarnama) : FMCG sector giant ITC on Thursday approved the plan to separate its hotel business in line with the recommendation of the advisors. ITC shareholders today, on Thursday, approved the separation of the hotel business with a majority of 99.6 percent. The board of ITC approved the plan to separate the hotel business in August 2023. Under that, the shareholders of this cigarette manufacturing company are to be given 1 share of ITC Hotels in exchange for every 10 shares.
According to media reports, proxy advisory firms Stakeholders Empowerment Services (SES) and InGovern Research Services last month asked shareholders to support the demerger proposal, while Institutional Investor Advisory Services (IIAS) opposed the move.
Who will have how much stake now?
After the separation of the business, 60 percent stake of the new company will be with ITC shareholders and 40 percent stake will be with ITC. NCLT had called a meeting of ITC on June 6. After this meeting, the company has announced the results of the shareholders’ voting. Major shareholders of ITC include LIC (15.2 percent), Suuti (7.81 percent), Middleton Investment (3.9 percent), GQG Partners (1.69 percent) etc.
The company, famous for its Goldflake brand of cigarettes, announced the demerger plan in July last year and later said that the new company would be provisionally listed in 15 months. ITC Hotels as an independent entity will compete with rivals like Tata-owned Indian Hotels Company, Taj Hotels, EIH Associated Hotels, Oberoi brand hotels.
Meanwhile, ITC shares closed at Rs 436.40, up 1.42 per cent or Rs 6.10 on BSE today.