Proxy advisory firm Institutional Investor Advisory Services (IiAS) has recommended shareholders of ITC Ltd to vote against the proposed demerger of the conglomerate’s hotel business. IiAS argues that the demerger does not fully unlock shareholder value or sufficiently separate the hotel business from ITC. The demerger plan, approved by ITC’s board last August, entails shareholders receiving one share in the new hotel entity for every 10 shares held in ITC. While the hotel business will be listed separately, ITC will retain about 40% ownership in the resulting company, leaving shareholders with approximately 60% ownership.
Proxy Advisory Firm Advises Against ITC’s Hotel Business Demerger
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