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Asian Hotels: Demerger to unlock value for shareholders

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THE Delhi-based Asian Hotels (AHL), one of the largest players in the hospitality business, has got its shareholders’ approval to demerge the company into three independent entities. The three undertakings will own one property each in Delhi, Mumbai and Kolkata.

The Mumbai undertaking, along with investments and development options in Bangalore, would be transferred to its subsidiary Chillwinds Hotels; the Kolkata undertaking, along with investments and development options in Bhubaneswar and Regency Convention Centre and Hotels Limited, would be transferred to its subsidiary Vardhman Hotels, and the Delhi undertaking would form the residual Asian Hotels. All the three entities would be separately listed and traded on the exchanges.

Under the scheme of demerger, every existing shareholder of Asian Hotels would get equal number of shares in the two new entities in the ratio of 3:10. This means that for every 10 shares held by them, they will get 3 shares each of the two new entities. The company is yet to announce the record date for the demerger and hence, investors can still buy into the company’s stock.

More : economictimes.indiatimes.com

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