ITC Ltd Strengthens Hospitality Stake with Strategic Acquisitions

ITC Ltd is consolidating its stake in competing hospitality chains Oberoi and Leela by acquiring shares from its subsidiary, Russell Credit Ltd. This strategic move will increase ITC's holdings in EIH Ltd and HLV Ltd to 16.13% and 8.11%, respectively, as part of its hotel business demerger.

ITC Ltd has announced a major consolidation move in the hospitality sector. The company is in the process of acquiring additional shares in competing chains Oberoi and Leela, through its wholly-owned arm, Russell Credit Ltd. This strategic acquisition aims to bolster ITC's presence in the luxury hospitality market.

On Thursday, ITC's board approved the acquisition of 1.52 crore equity shares of EIH Ltd and 34.60 lakh equity shares of HLV Ltd, at their respective book values. EIH operates under brands such as Oberoi and Trident, while HLV runs the Leela chain. This consolidation is designed to enhance ITC's control over these entities.

Following the acquisition, ITC's stakes in EIH will rise to 16.13% and 8.11% in HLV, respectively. The acquisition is part of ITC's broader plan to demerge its hotel business into a separate entity known as ITC Hotels Ltd, focusing on luxury properties across multiple brands.

(With inputs from agencies.)