New Delhi: India Tourism Development Corporation (ITDC) is seeking shareholders’ nod to divest stake in the undertakings and joint venture (JV) subsidiaries of the company. The state-run firm is looking to divest or offload its stake in all hotels run by it except Ashok and Samrat hotels in the national capital.
The Ministry of Tourism has appointed transaction advisors to offload stake in Hotel Jaipur Ashok, Jaipur, Lalitha Mahal Palace Hotel, Mysore, Hotel Patliputra Ashok, Patna and Hotel Kalinga Ashok, Bhubaneswar. “ITDC being a government company, predominantly owned by the Government of India, it was found desirable to seek shareholders approval for sale, lease or otherwise disposal of units as a matter of good corporate governance, to maintain full transparency and also because some of the units may be leased to non–government entities,” it said in a regulatory filing.
Besides, the company is also divesting stake in all subsidiaries — Madhya Pradesh Ashok Hotel Corporation, Assam Ashok Hotel Corporation, Pondicherry Ashok Hotel Corporation, Donyi Polo Ashok Hotel Corporation and Punjab Ashok Hotel Company. “The Ministry of Tourism formed an Inter Ministerial Group (IMG) for the purpose. The Transaction Advisors/Consultants, for deriving the valuation and financial models were appointed by the Ministry of Tourism in respect of five subsidiary companies,” it said.
However, the company will not divest stake in Utkal Ashok Hotel Corporation, in which the matter is sub-judice and a decision is awaited. On 23 March, the company had informed that it has initiated the process of disinvestment of hotels and JV subsidiary companies. “It was decided that an in-principle approval of the shareholders will be sought through postal ballot,” ITDC had said. In FY 2015-16, ITDC reported revenues of Rs437.13 crore. PTI