Realty major Unitech said Wednesday it has offered to acquire London-listed Unitech Corporate Parks through an all cash deal worth nearly Rs 700 crore (Rs 7 billion), which is 22 per cent 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 pounds through listing at London Stock Exchange's AIM market.
It had bought 60 per cent 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.
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 per cent 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 per cent stake in UCP, while Unitech promoters indirectly hold 0.22 per cent in UCP.
In a separate filing to the LSE, UCP 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.
"The board of directors of 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 current trading levels," it added.
Unitech said the company had constituted a committee to explore potential acquisitions in India or overseas and as part of this evaluation, it has been considering a possible offer for the UCP.
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 on the stock exchanges within 2010.
The Unitech scrip was trading 1.42 per cent down at Rs 83.40 during afternoon trade on the BSE.
