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De-merger of Unitech Infra from Unitech – 1:1 Ratio

July 19, 2010

Unitech has filed the amalgamation/de-merger scheme document for de-merger of its infrastructure businesses into Unitech Infra (de-merged entity) and amalgamation of two wholly owned subsidiaries of Unitech – Unitech Holdings and Aditya Properties
(Aditya Prop.) with Unitech

Post amalgamation, Unitech’s non-real estate businesses will be de-merged into Unitech Infra (comprising amusement parks, hotels, construction, telecom, transmission towers, property and township management, SEZs, IT parks and industrial parks).

As per Unitech’s earlier guidance, post demerger, the shareholders of Unitech will get one share each in the demerged Unitech and in Unitech Infra. Further, Unitech will hold 35% in Unitech Infra. Unitech Infra will have a net worth of INR 49.8 bn and debt of INR 3.5 bn.

The scheme document proposes amalgamation of Unitech Holdings and Aditya Prop. in Unitech. Currently, Unitech Holdings has ~126 acres of land parcels in Gurgaon with cash of INR ~2 mn, while Aditya Prop. has ~22 acres of land parcels across Gurgaon and Lucknow with cash of INR ~0.6 mn. Fair value of the amalgamated entities will reflect on Unitech‘s books post amalgamation.

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