- IHCL to merge OHL.
- OHL shareholders to receive 25 IHCL shares.
- Its portfolio includes seven hotels.
The deal gives shareholders 25 IHCL shares for every 117 OHL shares, with the merger expected to finish in the second half of fiscal 2028. It will support IHCL’s “Accelerate 2030” strategy and improve operational efficiency, the company said in a statement.
OHL is an associate company of IHCL, with seven hotels and 825 rooms. Its freehold assets include Taj Coromandel Chennai, Taj Fisherman's Cove Resort & Spa Chennai and Gateway Coonoor. Long tenure leasehold assets include Taj Malabar Resort & Spa Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai. OHL also holds investments in several IHCL group hotel companies in India and overseas, including St. James Court, TAL Hotels and Resorts, Lanka Island Resorts, Taj Madurai and Taj Karnataka Hotels and Resorts.
“In line with our Accelerate 2030 strategy of creating value, simplifying the group’s holding structure and unlocking the full potential of the OHL portfolio, the boards of IHCL and OHL have today approved this merger,” said Puneet Chhatwal, IHCL managing director and CEO. “The merger will drive long-term value creation by leveraging IHCL’s balance sheet to support strategic investments, including inventory expansion and product enhancements.”
Pramod Ranjan, OHL managing director and CEO said, IHCL delivered 17 consecutive quarters of record performance, with fourfold portfolio growth and sustained double-digit revenue and profit growth.
“The merger of OHL with IHCL will create significant value for OHL shareholders, enabling them to now participate directly in IHCL's growth journey,” Ranjan said.
“The merger will simplify the group’s holding structure by increasing IHCL’s direct ownership in several entities, creating two new operating subsidiaries. This will streamline governance, reduce overheads, improve efficiency and support our Accelerate 2030 objectives,” said Ankur Dalwani, IHCL executive vice president and CFO.
For IHCL, PwC Business Consulting Services was the registered valuer, while Kotak Mahindra Capital Ltd. provided the fairness opinion and Cyril Amarchand Mangaldas served as legal counsel. For OHL, SSPA & Co. was the registered valuer, with Motilal Oswal Investment Advisors Ltd. providing the fairness opinion and Kochhar & Co. serving as legal counsel.
Separately, IHCL recently opened the 181-key Taj Palace, Lucknow, its second Taj hotel in Uttar Pradesh.
