TBM Staff - Mumbai
ITC Ltd. has announced a strategic move to consolidate its shareholding in two major hospitality brands, Oberoi and Leela, coinciding with its ongoing demerger of the hotel business. The company’s board approved the acquisition of shares from its wholly-owned subsidiary, Russell Credit Ltd (RCL), which aims to enhance ITC’s investments in these competitive chains.
According to a regulatory filing, ITC plans to acquire 1.52 crore shares of EIH Ltd, the parent company of Oberoi and Trident, along with 34.60 lakh shares of HLV Ltd, the operator of Leela Hotels. This acquisition will boost ITC’s total stake to 16.13% in EIH and 8.11% in HLV. The acquisitions will be executed at book value, and they are pending the necessary approvals from RCL’s board.
In addition to the share acquisitions, ITC’s board has also approved the purchase of Greenacre Holdings Ltd, an unlisted subsidiary of RCL, at book value. This move is part of ITC’s broader strategy to expand its footprint in the hospitality sector and strengthen its portfolio of premium brands.
This initiative aligns with ITC’s plan to establish ITC Hotels Ltd, a new entity that will manage over 140 properties under six brands, including ITC Hotels, Welcomhotel, and Fortune. The demerger, which is anticipated to be finalised by June 2024, has already received shareholder approval, marking a significant step in ITC’s growth trajectory in the hospitality industry.
