IHCL to merge Oriental Hotels under proposed share-swap deal

Indian Hotels Company Limited (IHCL) has approved a merger with its associate company, Oriental Hotels (OHL). The deal involves a share-for-share exchange ratio of 25 IHCL shares for every 117 OHL shares. The proposal must still receive legal clearance before proceeding. The scheduled implementation date is April 1, 2027, with completion expected by the second half of fiscal year 2028.

OHL's CEO Pramod Ranjan expressed confidence in the merger, stating it will create significant value for OHL shareholders and allow them to directly participate in IHCL's growth. IHCL's CEO Puneet Chhatwal echoed similar sentiments, predicting the merger will drive long-term value creation through strategic investments and portfolio strengthening.

The merger combines OHL's seven hotels with 825 rooms, including properties such as Taj Coromandel and Gateway Coonoor. OHL also holds long-term leasehold investments in various IHCL group hotels across India and internationally, encompassing properties like Taj Malabar Resort & Spa and Vivanta Coimbatore. IHCL's leadership, backed by PwC and Kotak Mahindra Capital, is evaluating the fairness of the transaction.