Realty major Unitech on Wednesday said that it has offered to acquire London-listed Unitech Corporate Parks (UCP) through an all-cash deal worth nearly Rs 700 crore, which is 22% more than the current market valuation.
UCP, which was formed in late 2006 by Unitech, among others, to invest in Indian commercial real estate, had raised ?360 million through its listing at London Stock Exchanges (LSE) AIM market. It had bought 60 % stake in the six commercial projects, being developed by Unitech in the NCR and Kolkata.
?Unitech has made an approach and is discussing with the independent directors of UCP a possible offer from the Unitech Group,? the developer said in a filing to the BSE.
Under the terms of the possible offer, Unitech said the consideration would comprise 31 pence in cash in respect of each UCP share. The offer represents a premium of 22.8 % to the closing middle market price of 25.25 pence per UCP share on July 26. Unitech owns 1.6 crore shares representing 4.52 % stake in UCP, while Unitech promoters indirectly hold 0.22 % in UCP.
Unitech believes that this 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 cuurent trading levels.
The development comes within three months of Unitech announcing demerger of its infrastructure business, including telecom, into a separate company, Unitech Infra. It plans to list the new entity within 2010.