Fair trade regulator CCI on Tuesday said it has approved the demerger of the hotel business of diversified entity ITC Ltd into a separate entity.
Photograph: Courtesy, ITC Hotels
After the completion of the demerger, shares of ITC Hotels Ltd, a new entity, will be listed on the stock exchanges.
The proposed combination relates to the demerger of the demerged undertaking to ITC’s wholly-owned newly incorporated subsidiary, ITC Hotels.
Following the demerger, shares of ITC Hotels will be listed.
ITC will continue to hold a 40 per cent stake, while the remaining 60 per cent will be held by the conglomerate’s shareholders, according to a notice on the CCI website.
ITC has diversified businesses in India spanning from FMCG, hotels, paperboards, paper and packaging, and agri business.
The proposed combination is only an internal restructuring exercise which will not result in any change in market dynamics, ITC said in the notice.
“Commission approves demerger of Hotels Business of ITC Ltd to its wholly-owned subsidiary ITC Hotels Ltd,” Competition Commission of India (CCI) said in a post on X.
In July 2023, ITC said it will demerge its hotel business by incorporating wholly-owned subsidiary ITC Hotels Ltd.
The company’s board has also approved the incorporation of the wholly-owned subsidiary ITC Hotels Ltd, which will handle its hotels and hospitality business, it added.
Launched in 1975, ITC Hotels, India’s premier chain of luxury hotels, has over 115 hotels in 80-plus destinations across six distinct brands.
In a another post by CCI, the regulator approved the right to nominate a director on the board of directors of the Embassy Office Parks REIT by APAC Company XXIII Ltd and Kotak Performing RE Credit Strategy Fund I.
APAC Company XXIII Ltd is owned and controlled by funds related to US-based private equity firm Bain Capital.
Kotak Performing RE Credit Strategy Fund I is a Sebi-registered alternative investment funds, and is managed by Kotak Alternate Asset Managers Ltd.
The Bengaluru-based REIT operates and invests in rent and/or income generating real estate and related assets in India.
In a separate post, the competition watchdog said it approved the transfer of the chassis and BIW businesses of Magna India to SKH M India and to be jointly controlled thereafter by SKH SMC, SKH LLP, and Magna India.
SKH SMC is engaged in the business of manufacturing fuel tanks, chassis and BIW parts and seat structures for passenger vehicles, while SKH LLP provides management services to Krishna Group companies.
Magna India manufactures structural assemblies, components, sub-assemblies, and modules, including chassis and BIW components.
The CCI said it has cleared the deals on Tuesday.
The deals beyond a certain threshold require approval from the regulator, which keeps a tab on unfair business practices as well as promotes fair competition in the marketplace.
