Reliance Communications shares hits 52-week high on realty hive off plans

Jul 08 2013, 13:20 IST
Comments 0
SummaryAnil Ambani-led firm spurted by 9.29 per cent to Rs 148.20.

Shares of Reliance Communications today jumped by over 9 per cent to touch its 52-week high in morning trade, after the company announced it is hiving off its entire real estate assets into a separate listed company.

Cheering the news, shares of the Anil Ambani-led firm opened the day on a firm note and as the trade progressed it spurted by 9.29 per cent to Rs 148.20 -- its 52-week high on the BSE.

At the NSE, the stock zoomed up by 9.24 per cent to touch its one-year high of Rs 148.25.

"The demerger is expected to enhance value for Rcom's existing shareholders. This spin-off is another effort in anticipation for the group to raise funds through an imminent stake sale," Angel Broking said in a report.

In a bonanza for its shareholders, billionaire Anil Ambani-led Reliance Communications yesterday announced it is hiving off its entire real estate assets, estimated to be of around Rs 12,000 crore, into a separate listed company.

Besides unlocking the value of its real estate, Rcom shareholders will free shares in Reliance Properties in the ratio 1:1.

"Board of Directors has in principle decided on a demerger of the real estate held by RCOM into a separate unit, Reliance Properties Ltd. The preliminary and indicative

monetisable value of RCom's real estate on development is estimated by independent valuers at over Rs 12,000 crore (USD 2 billion), which is equal to Rs 60 (USD 1) per RCom share," the company yesterday said.

The demerger is aimed at creating large shareholder value, similar value created from the initial demerger of Anil Ambani Reliance Group from Reliance Industries in 2005.

The proposed separation of real estate into a separate unit is part of RCom's strategic plan to divest non-core assets, and focus on its core wireless and enterprise

business.

Reliance Properties will be a separate listed company and will work with leading global partners to develop the real estate.

Ads by Google
Reader´s Comments
| Post a Comment
Please Wait while comments are loading...