ITC Limited Acquires Greenacre Holdings in Internal Restructuring Move
On November 29, 2024, ITC Limited acquired full ownership of Greenacre Holdings Limited (GHL) by purchasing 4,20,60,166 equity shares from Russell Credit Limited (RCL), a wholly owned subsidiary of ITC. With this transaction, GHL becomes a direct wholly owned subsidiary (WOS) of ITC Limited.
Details of the Acquisition
- Consideration: The shares were acquired for a cash consideration of ₹42.10 crore, matching their book value in RCL’s records.
- Rationale: The acquisition was part of an internal restructuring initiative within the ITC group.
- Related Party Transaction: As the seller, RCL, is a subsidiary of ITC, the deal qualifies as a related party transaction. Necessary approvals were obtained, and relevant disclosures will be included in ITC’s annual report. No promoters or promoter group members of ITC have any interest in GHL.
- Regulatory Approvals: The transaction did not require governmental or regulatory approvals.
- Completion: The acquisition was completed on the same day, November 29, 2024.
About Greenacre Holdings Limited (GHL)
- Core Business: GHL specializes in property infrastructure maintenance and offers engineering, procurement, construction management, and project management consultancy services.
- Incorporation: Established on June 2, 1986.
- Turnover:
- FY 2023-24: ₹7.52 crore
- FY 2022-23: ₹5.95 crore
- FY 2021-22: ₹6.39 crore
- Country of Operations: India
Strategic Implications
This acquisition, part of ITC’s internal restructuring, is expected to enhance operational synergies between ITC and GHL. GHL’s business aligns with ITC’s broader strategy, complementing its existing operations.
