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Indian Hotels Company Ltd (IHCL), part of the Tata Group, and its associate company Oriental Hotels Ltd (OHL) have approved a Scheme of Arrangement to merge OHL with IHCL through an all-stock transaction. Under the proposed scheme, OHL shareholders will receive 25 IHCL shares for every 117 OHL shares held. The transaction has an appointed date of April 1, 2027, and is targeted for completion in the second half of FY2028, subject to statutory approvals. OHL operates seven hotels with 825 rooms, including Taj Coromandel and Taj Fisherman’s Cove in Chennai and Taj Malabar Resort & Spa in Kochi.
Indian Hotels Company Ltd (IHCL) has approved the merger of its associate company Oriental Hotels Ltd (OHL) through an all-stock Scheme of Arrangement, with the transaction targeted for completion in the second half of FY2028. The boards of both companies approved the proposal on August 24, with the scheme carrying an appointed date of April 1, 2027. The merger remains subject to statutory approvals and other applicable clearances.
Under the proposed arrangement, shareholders of OHL will receive 25 IHCL shares for every 117 shares held in Oriental Hotels. The all-stock structure will result in OHL shareholders becoming direct shareholders of IHCL, while bringing the hotel company's assets and investments more directly under the Tata Group hospitality company.
Oriental Hotels currently operates a portfolio of seven hotels comprising 825 rooms. Its assets include Taj Coromandel in Chennai, Taj Fisherman’s Cove Resort & Spa in Chennai and Gateway Coonoor, which are freehold properties. Its long-term leasehold portfolio comprises Taj Malabar Resort & Spa in Kochi, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
The proposed merger will also consolidate OHL's strategic investments in several companies associated with the IHCL group. These include St. James Court, TAL Hotels and Resorts Ltd, Lanka Island Resorts Ltd, Taj Madurai Ltd and Taj Karnataka Hotels and Resorts Ltd, covering hotel interests in India and overseas markets.
IHCL said the transaction forms part of its Accelerate 2030 strategy and is intended to simplify the group's holding structure. The company said the merger would increase its direct ownership in several entities and result in two new operating subsidiaries. The restructuring is expected to streamline governance and reduce overheads associated with the existing holding structure.
The scheme is also intended to bring the OHL portfolio more directly within IHCL's operating structure. Among the properties involved are established assets such as Taj Coromandel, Taj Fisherman’s Cove Resort & Spa and Taj Malabar Resort & Spa, which form part of the company's hotel portfolio across southern India.
For OHL shareholders, the proposed share exchange will provide direct participation in IHCL rather than continued ownership through the existing associate-company structure. Oriental Hotels' management said the arrangement would allow shareholders to participate directly in IHCL's growth.
The transaction will now proceed through the required statutory and regulatory approval process. The companies have targeted the second half of FY2028 for completion, subject to receipt of the necessary clearances and fulfilment of the conditions under the Scheme of Arrangement.
Once completed, the merger will consolidate Oriental Hotels' operating assets and strategic investments more closely within IHCL's corporate structure. The restructuring is expected to simplify ownership arrangements while retaining the hotels within the wider IHCL portfolio.
Source PTI
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