Lemon Tree Hotels Clears Major Group Restructuring and Demerger Plan

The latest update is out from Lemon Tree Hotels Ltd. ( (IN:LEMONTREE) ).

Lemon Tree Hotels’ board has approved a composite scheme of arrangement to reorganize its group structure involving the parent company, its material subsidiary Fleur Hotels Limited and six wholly owned subsidiaries. The plan provides for the amalgamation of two wholly owned subsidiaries directly into Lemon Tree Hotels, the merger of four other wholly owned subsidiaries into Fleur Hotels with specific share-swap ratios, and the subsequent demerger of Lemon Tree’s identified hotel assets and hospitality platform into Fleur Hotels, which will issue shares to Lemon Tree shareholders in exchange. Post-restructuring, the hotels transferred to Fleur Hotels will continue to be managed and operated by Lemon Tree under revised hotel operating agreements, and the company will prioritize referring new hotel development opportunities to Fleur, signaling a shift toward a more focused asset platform and a clearer separation between asset ownership and hotel operations. The scheme is subject to multiple regulatory and stakeholder approvals, including from stock exchanges, SEBI, shareholders and creditors, the National Company Law Tribunal and, if required, the Competition Commission of India.

More about Lemon Tree Hotels Ltd.

Lemon Tree Hotels Limited is an Indian hospitality company operating in the mid-scale and upscale hotel segments, with a portfolio of owned and managed properties across key urban and business locations. Through its subsidiaries and hotel operating agreements, the group focuses on hotel ownership, development and management, leveraging an asset platform and development capabilities to expand its presence in the domestic hospitality market.

Average Trading Volume: 188,721

Technical Sentiment Signal: Buy

Current Market Cap: 121.4B INR

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