India's ITC gets shareholder nod for hotels business carve-out
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 06 2024
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Source: reuters
- ITC Shareholders Approve Carving Out Hotels Business:
- ITC shareholders approved the plan to separate its hotels business, with 99.6% of minority shareholders in favor.
- The company's shares rose by 1.2% after the vote outcome.
- Proxy advisory firms recommended supporting the demerger proposal, while one advisory service opposed it.
- Concerns were raised about the clarity on expected synergies from maintaining a 40% stake in the new entity, ITC Hotels.
- The new entity, ITC Hotels, will compete independently with rivals like Indian Hotels Company and EIH Associated Hotels.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
