IHCL, Oriental Hotels Approve Merger Plan; All-Stock Transaction Targets FY2028 Completion

The proposed transaction is an all-stock merger with a share exchange ratio of 25 Indian Hotels Company Ltd. shares for every 117 Oriental Hotels Ltd. shares. Completion is targeted in the second half of FY2028, with an appointed date of April 1, 2027.

Oriental Hotels is an associate company of Indian Hotels Company. Its portfolio comprises seven hotels with 825 rooms, including the freehold assets Taj Coromandel, Chennai; Taj Fisherman’s Cove Resort & Spa, Chennai; and Gateway Coonoor.

Its long-tenure leasehold assets are Taj Malabar Resort & Spa, Cochin; Vivanta Coimbatore; Vivanta Mangalore; and Gateway Madurai.

Oriental Hotels also holds strategic investments in several Indian Hotels group hotel companies in India and internationally, including St. James Court, TAL Hotels and Resorts Ltd., Lanka Island Resorts Ltd., Taj Madurai Ltd. and Taj Karnataka Hotels and Resorts Ltd.

The merger is intended to simplify the group’s holding structure and increase Indian Hotels’ direct ownership across several entities. The transaction would result in two new operating subsidiaries.

For Indian Hotels, PwC Business Consulting Services LLP acted as the registered valuer, conducted the valuation exercise and recommended the share exchange ratio. Kotak Mahindra Capital Company Ltd. provided a fairness opinion, and Cyril Amarchand Mangaldas served as legal counsel.

For Oriental Hotels, SSPA & Co., Chartered Accountants, acted as the registered valuer, conducted the valuation exercise and recommended the share exchange ratio. Motilal Oswal Investment Advisors Ltd. provided a fairness opinion, while Kochhar & Co. acted as legal counsel.