New Delhi: Real estate firm Unitech Ltd will spin off its non-core businesses, including investments in telecommunications and hotels, into a separate company called Unitech Infra Ltd, currently a wholly owned subsidiary.
“The board has approved the demerger of the infrastructure undertaking of the company...comprising amusement parks and hotels...and investments in the infrastructure sector,” the company said in a release after a board meeting. “The restructuring committee formed earlier will hive off the shares and investments held in companies in the telecommunications sectors.”
The infrastructure investments, according to the filing, include telecommunications, transmission towers, hotels, amusement parks, special economic zones, IT parks, logistics parks, industrial parks, property management operations and township management operations.
Under the new arrangement, Unitech Infra will cease to be a wholly owned subsidiary of Unitech. The firm will hold 35%, or approximately 1408.7 million equity shares of Rs2 each, of issued and paid up share capital of Unitech Infra and the existing shareholders of Unitech will hold the rest.
On the hospitality front, Unitech sold its 200-room Courtyard by Marriott hotel in Gurgaon in February 2009.
Unitech had planned in 2007 to build 28 hotels under various categories. It had signed alliances with Marriott, Carlson, Ritz Carlton and Country Inn and tied up the management of 10 hotels.
The board has also approved the proposal for the amalgamation of two wholly owned subsidiaries—Aditya Properties Pvt. Ltd and Unitech Holdings Ltd—with the company.
It approved a swap ratio of 1:1 for the demerger of Unitech Infra for the existing shareholders of Unitech. The latter will get an equivalent number of Unitech Infra shares of a face value of Rs2 each.
The company had earlier informed the Bombay Stock Exchange that the board meeting would be held on 20 April to consider the recommendations of a committee on various proposals for corporate restructuring, with the objective of unlocking shareholder value.