Unitech mulls ‘possible offer' for AIM-listed Unitech Corp Parks
The Hindu Business Line
Real estate company Unitech Ltd said, on Wednesday, it is considering a “possible offer” to acquire Unitech Corporate Parks, which is listed on the Alternative Investment Market of the London Stock Exchange.
The possible offer could be priced at 31 pence (in cash) a share, a 23 per cent premium to UCP's closing price on Monday, the company said in a statement to the BSE. However, no details were available on total amount that Unitech will have to shell out for the offer.
Unitech and its promoters together own 4.74 per cent stake in UCP. “UCP has an independent board…UCP is owned by institutional investors,” a senior Unitech official said but did not divulge the names of these institutional investors.
The BSE notice by the company said, “Unitech Ltd has constituted a committee to explore and evaluate potential acquisitions, whether in India or overseas, in the best interests of the company and its shareholders. As part of this evaluation and in connection with the demerger of the infrastructure business of Unitech into Unitech Infra Ltd, Unitech has been considering a possible offer for UCP.”
UCP owns the majority interests in the corporate park assets (office complexes for tech companies). “Unitech has made an approach and is currently discussing with the independent directors of UCP a possible offer for UCP from the Unitech Group,” it added.
It said that Unitech Board believes that the ‘possible offer' would provide an attractive opportunity for UCP shareholders to realise their investment in what is currently a relatively illiquid stock, in cash, at a premium to current trading levels.
“Discussions are at an early stage and there can be no certainty that any offer will be forthcoming….A further announcement will be made in due course,” it said. Unitech owns 162 lakh shares in UCP through a wholly-owned subsidiary Nectrus Ltd representing about 4.52 per cent holding. Unitech promoters Mr Sanjay Chandra (a Director of Nectrus) and Mr Ajay Chandra (a director of UCP) also equally hold the beneficial ownership of Fairway Advisory Services Ltd, which owns 7.81 lakh shares in UCP representing about 0.22 per cent holding.
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