New Delhi, March 20 Thomas Cook India Limited announced on Friday that it will separate 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 subsidiary.
The Board of Thomas Cook (India) Limited (TCIL) gave in-principle approval to the demerger proposal based on recommendations from the audit committee and the independent committee.
TCIL owns and/or operates 6 resorts under the brand name Nature Trails. It will separate this business into SHRL as part of the demerger.
This restructuring will streamline TCIL's existing capital structure, resulting in improved earnings per share for TCIL shareholders, the company said.
TCIL shareholders will receive shares of SHRL in exchange 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 after the demerger.
The promoter and public shareholding patterns of TCIL and SHRL will remain similar after the demerger.
Shares of SHRL will be listed on BSE and NSE, Thomas Cook India stated.
TCIL will consolidate 4 shares with a face value of Rs 1 each into 1 share with a face value of Rs 4 each. The proposed demerger and restructuring are subject to approval from the NCLT and other regulatory bodies.
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."