Tata Group's IHCL To Merge Oriental Hotels In All-Stock Deal; Share Swap Ratio Announced
Tata Group-owned Indian Hotels Company (IHCL) will merge Oriental Hotels through an all-stock transaction after both boards approved the Scheme of Arrangement. Shareholders of Oriental Hotels will receive 25 IHCL shares for every 117 OHL shares. The merger is targeted for the second half of FY2028, subject to approvals
Tata Group-owned Indian Hotels Company Ltd (IHCL) has announced plans to merge Oriental Hotels Ltd (OHL) with itself through an all-stock transaction.
According to a report by PTI, the boards of both companies have approved the proposed Scheme of Arrangement, with the transaction expected to be completed in the second half of FY2028, subject to regulatory and statutory approvals.
Under the proposed scheme, Oriental Hotels shareholders will receive 25 IHCL shares for every 117 shares held in OHL. The appointed date for the merger has been set as April 1, 2027.
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Oriental Hotels is currently an associate company of IHCL and operates a portfolio of seven hotels comprising 825 rooms. Its assets include Taj Coromandel and Taj Fisherman's Cove Resort & Spa in Chennai, Gateway Coonoor, Taj Malabar Resort & Spa in Cochin, Vivanta Coimbatore, Vivanta Mangalore and Gateway Madurai.
OHL also has strategic investments in several hotel businesses associated with the IHCL group in India and overseas.
IHCL said the transaction is part of its Accelerate 2030 strategy and is aimed at simplifying the group's ownership structure while unlocking the value of Oriental Hotels' portfolio.
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According to IHCL, the merger will increase its direct ownership in several entities and result in the creation of two new operating subsidiaries. The company expects the restructuring to simplify governance, reduce overheads and improve operational efficiency.
IHCL Managing Director and CEO Puneet Chhatwal said the transaction would help unlock the potential of OHL's portfolio, which includes several prominent Taj properties.
Oriental Hotels Managing Director and CEO Pramod Ranjan said the merger would allow OHL shareholders to participate directly in IHCL's future growth.
The proposed transaction remains subject to necessary statutory clearances and regulatory approvals.
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