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Lemon Tree Hotels Ltd. ( (IN:LEMONTREE) ) just unveiled an announcement.
Lemon Tree Hotels Ltd. has approved a composite scheme of arrangement to reorganize its group structure involving the amalgamation of several wholly owned subsidiaries into the listed parent and its material subsidiary Fleur Hotels Ltd., followed by the demerger of a defined hotel and hospitality asset platform into Fleur. Under the scheme, two wholly owned subsidiaries will be merged into Lemon Tree Hotels without any share consideration, four other wholly owned subsidiaries will be merged into Fleur Hotels in exchange for new equity shares of Fleur, and the identified hotel assets, development capabilities and related liabilities will then be demerged from Lemon Tree into Fleur in return for Fleur issuing shares to Lemon Tree shareholders at a specified swap ratio. Post-reorganisation, the hotels vested in Fleur will continue to be managed and operated by Lemon Tree under revised hotel operating agreements, with Lemon Tree also agreeing to refer future hotel development opportunities first to Fleur, a structure that is aimed at streamlining the asset-holding platform while preserving and potentially enhancing the core hotel management and operating income stream for the listed company. The scheme remains subject to customary regulatory and stakeholder approvals, including clearances from stock exchanges and SEBI, shareholder and creditor votes, National Company Law Tribunal sanction, and competition approval if required.
More about Lemon Tree Hotels Ltd.
Lemon Tree Hotels Ltd. is a leading mid-market hospitality company in India, operating and managing hotels across key urban and business destinations. The group, through its subsidiaries and associated entities such as Fleur Hotels Ltd. and Carnation Hotels, focuses on owning, developing and operating hotel assets as well as providing hotel management and franchise services within the domestic hospitality sector.
Average Trading Volume: 188,721
Technical Sentiment Signal: Buy
Current Market Cap: 121.4B INR
For detailed information about LEMONTREE stock, go to TipRanks’ Stock Analysis page.