MEDIA RELEASE PR40599
Unitech Limited ("Unitech" or the "Company") Possible Offer for Unitech Corporate
Parks Plc ("UCP")
NEW DELHI, July 28 /PRNewswire-AsiaNet/ --
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Unitech Limited (BSE:507878) notes the possible offer announcement made
by Unitech Corporate Parks Plc (AIM: UCP).
Unitech has constituted a committee to explore and evaluate, inter alia,
potential acquisitions, whether in India or overseas, in the best interests
of the Company and its shareholders. As part of this evaluation, and in
connection with the demerger of the infrastructure business of Unitech into
Unitech Infra Limited, Unitech has been considering a possible offer for UCP.
UCP is an AIM-listed company which owns the majority interests in the
corporate park assets in respect of which entities within the Unitech Group
act as project manager, investment manager and investment adviser and also
own the residual interests(1).
Unitech has made an approach and is currently discussing with the
independent directors of UCP a possible offer for UCP from the Unitech Group.
Under the terms of the possible offer, consideration would comprise 31 pence
in cash in respect of each UCP share. It is expected that any offer will be
implemented by way of an Isle of Man scheme of arrangement.
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. The possible offer represents a premium of
22.8 per cent. to the closing middle market price of 25.25 pence per UCP
share on 26 July 2010.
Discussions are at an early stage and there can be no certainty that any
offer will be forthcoming. If an offer or a proposal to pursue any other
transaction is made (i) Unitech reserves the right to make an offer on less
favourable terms with the recommendation of the board of UCP and (ii) in any
other case, it must be made on terms that are, taken as a whole, at least as
favourable to UCP shareholders as those set out in this announcement,
provided that Unitech reserves the right to change the form or mix of
consideration. A further announcement will be made in due course.
Unitech owns 16,256,517 shares in UCP through a wholly-owned subsidiary
Nectrus Limited representing approximately 4.52 per cent of UCP's issued
share capital. Mr. Sanjay Chandra, a director of Nectrus Limited and Mr. Ajay
Chandra, a director of UCP also equally hold the beneficial ownership of
Fairway Advisory Services Limited which owns 781,737 shares in UCP
representing approximately 0.22 per cent of UCP's issued share capital.
(1) Unitech owns the residual interest in all the UCP assets except in
Unitech Hi-Tech Structures Limited where third parties hold 4%, UCP
holds 60% and Unitech holds 36%.
Forward Looking Statements
Certain statements in this announcement are or may be forward looking
statements. Forward looking statements involve risks and uncertainties that
could significantly affect expected results and are based on certain key
assumptions. Many factors could cause actual results to differ materially
from those projected or implied in any forward looking statements. Due to
such uncertainties and risks, readers are cautioned not to place undue
reliance on such forward looking statements, which speak only as of the date
hereof. Unitech expressly disclaim any obligation to update any forward
looking or other statements contained herein, except as required by
applicable.
Press enquiries:
Tanuja Kehar
General Manager - Corporate Communications, Unitech
Tanuja.Kehar@unitechgroup.com / +91-124-4125200 / +91-124-4125219
Sachin Rampal
Vaishnavi Corporate Communications
sachinr@vccpl.com / +91-99-5810-0406
SOURCE: Unitech Limited
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