The Indian Hotels Company Limited (IHCL) has approved the combination of the company with its associate company Oriental Hotels (OHL).
The scheme of arrangement will carry an exchange ratio of 25 IHCL shares for every 117 OHL shares held.
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The proposal remains subject to statutory approvals and other clearances.
The appointed date for the scheme is 1 April 2027 with completion targeted for the second half of FY28.
OHL managing director and CEO Pramod Ranjan said: “The merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL’s growth journey.”
OHL operates seven hotels with a combined 825 rooms. Its freehold assets include Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai, and Gateway Coonoor.
Its long-term leasehold portfolio includes Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai.
OHL also has investments in a number of IHCL group hotel companies in India and overseas. These include St James Court, TAL Hotels and Resorts, Lanka Island Resorts, Taj Madurai, and Taj Karnataka Hotels and Resorts.
IHCL managing director and CEO Puneet Chhatwal said: “The merger will drive long-term value creation by leveraging IHCL’s strong balance sheet to support strategic investments, including inventory expansion and product enhancements further strengthening the premium positioning of the portfolio.”
For IHCL, PwC Business Consulting Services acted as registered valuer, while Kotak Mahindra Capital Company provided a fairness opinion. Cyril Amarchand Mangaldas acted as legal counsel for the hospitality company.
