Unitech to spin off biz including telecoms
NEW DELHI (Reuters) - Unitech Ltd, India's second-largest listed real estate firm, said late Tuesday it would spin off its infrastructure businesses including its investment in a telecoms firm into a separate company as it aims to unlock value.
For every one share held in Unitech Ltd, shareholders will get one share of the new firm Unitech Infra Ltd, to be listed on the stock exchanges, said New Delhi-based Unitech in a statement after a board meeting.
Unitech Infra will house the property firm's infrastructure businesses including telecoms, management of amusement parks, construction business, hotels, special economic zones, it said.
Currently, Unitech owns about 33 percent stake in telecoms firm Unitech Wireless, the Indian joint venture partner of Norway's Telenor.
In February, Telenor completed its stake buy in the telecoms venture, taking its holding to an agreed 67.25 percent.
While Unitech will own 35 percent of Unitech Infra, the realtor's existing shareholders will own the remainder.
Unitech said its board has approved constituting a committee to explore potential local and overseas acquisitions.
Prior to the announcement, Unitech shares closed 4.6 percent higher at 83.50 rupees in a Mumbai market.
(Reporting by Devidutta Tripathy; editing by Malini Menon)
(For more business news on Reuters Money visit www.reutersmoney.in)
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