New Delhi, Mar 20 (PTI) Thomas Cook India Limited on Friday said it will demerge its resorts and resort management business into Sterling Holiday Resorts Limited (SHRL), paving the way for the future listing of the company's wholly-owned arm.
The Board of Thomas Cook (India) Limited (TCIL) gave an in-principle approval to the demerger proposal based on a recommendation by the audit committee and the independent committee.
TCIL owns and/or operates 6 resorts directly under the brand name Nature Trails. It will demerge this business into SHRL as part of the demerger.
The restructuring will streamline the existing capital structure of TCIL, resulting in improved earnings per share for TCIL shareholders, the company said.
TCIL shareholders will receive SHRL shares as consideration for the demerger and in accordance with the share entitlement ratio of 0.81 shares of SHRL for every share of TCIL.
TCIL will continue to hold its current number of shares in SHRL post the demerger.
Promoters and public shareholding pattern of TCIL and SHRL will remain similar post the demerger.
Shares of SHRL will be listed on BSE and NSE, Thomas Cook India stated.
TCIL will consolidate 4 shares of face value Rs 1 each into 1 share of face value Rs 4 each. The proposed demerger and restructuring are subject to NCLT and other regulatory approvals.
Mahesh Iyer, Managing Director and CEO of Thomas Cook India Limited, said, "This demerger and restructuring unlocks tremendous value and potential for TCIL shareholders by streamlining the existing capital structure and resulting in improved earnings per share. The demerger and restructuring also pave the way for a future listing of SHRL, enabling it to chart its own course in the rapidly expanding hospitality space in India".