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IHCL to merge with Oriental Hotels in all-stock deal
The proposed all-stock share swap values the transaction at 25 IHCL shares for every 117 Oriental Hotels shares, with completion targeted in the second half of FY2028.
Indian Hotels Company Ltd, known as IHCL, said its board has approved a Scheme of Arrangement under which Oriental Hotels Ltd will be merged into IHCL through an all-stock transaction, after Oriental Hotels and IHCL boards also approved the plan. The deal proposes a share swap ratio of 25 IHCL shares for every 117 Oriental Hotels shares, and IHCL said the transaction is expected to be completed in the second half of FY2028. Oriental Hotels holds a portfolio of seven hotels totaling 825 rooms, including freehold assets such as Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort and Spa in Chennai, and Gateway Coonoor. It also includes long-tenure leasehold assets including Taj Malabar Resort and Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore, and Gateway Madurai, along with strategic investments in multiple IHCL group hotel companies. IHCL said the merger would simplify the group’s holding structure by increasing IHCL direct ownership across several entities, creating two new operating subsidiaries. The company expects the change to streamline governance, optimize overheads, enhance operational efficiency, and support its Accelerate 2030 objectives, while using its balance sheet for strategic investments such as inventory expansion and product enhancements, according to LiveMint Markets.