The 40-60 ratio shows the mindset of management here which in my opinion is a reasonable one. Complete demerger would invite takeover attempts and all the work done by ITC over the years would get wasted and someone else would reap all the benefits of a mature and profitable hotel business.
Two things I am interested here is the amount of royalty ITC gets from hotels and the freedom new management gets in running the business. Same management continuation would negate the entire point of demerger.
Also, BAT selling it’s stake in hotels should be a win-win for all as they will get rid of non-core business (for BAT) and hotels management won’t have to worry about keeping the biggest shareholder BAT happy while making decision for hotels. BAT will have an indirect stake but much less than before.
Disclaimer – My first stock purchase, so emotionally biased here
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