ITC Limited on Monday said its board has in principle approved the demerger of its hotel business into a separate entity, to be called ITC Hotels. The Kolkata-headquartered firm will hold 40 per cent stake in the new company, while the balance 60 per cent will be owned by the company’s shareholders in proportion to their existing shareholding.
The new scheme of arrangement will be considered at a board meeting on August 14. The company said in a statement the demerger would help the new entity attract investors and strategic partners whose investment focus and risk profiles are aligned more sharply with the hospitality industry.
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