ITC shareholders approve demerger of hotel biz with 99.6% majority votes

ITC Hotels will compete as an independent entity with rivals such as Tata-owned Indian Hotels Company, which operates Taj Hotels, and EIH Associated Hotels, which manages the Oberoi brand of hotels

ITC shareholders approved the Indian consumer goods maker's plan to carve-out its hotels business on Thursday, in line with the recommendation of key proxy advisors.

About 99.6% of the tobacco-to-soap firm's minority shareholders voted in favour of the move, exceeding the regulatory requirement of a three-fourth majority.

The company's shares closed 1.2% higher after the outcome of the vote. They were up 1% earlier in the session.

As per media reports, proxy advisory firms Stakeholders Empowerment Services (SES) and InGovern Research Services last month asked shareholders to support the demerger proposal, while Institutional Investor Advisory Services (IiAS) opposed the move.