Unitech offers to buy UK arm for 700 crore

NEW DELHI: Realty major Unitech on Wednesday said it has offered to acquire London-listed Unitech Corporate Parks 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 listing at London Stock Exchange's (LSE) AIM market.It had bought 60% stake in the six commercial projects, being developed by Unitech in the National Capital Region and Kolkata.
"Unitech has made an approach and is currently discussing with the independent directors of UCP a possible offer from the Unitech Group," the country's second largest developer said in a filing to the Bombay Stock Exchange (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. Currently, Unitech owns 1.6 crore shares representing 4.52% stake in UCP, while Unitech promoters indirectly hold 0.22% in UCP. In a separate filing to the LSE, Unitech Corporate Parks said: "...it has received an approach regarding a possible offer for the entire issued share capital of the company."
"Discussions are at an early stage and there can be no certainty that any offer will be forthcoming," Unitech said.