Unitech sets up panel for non-core spin-off

NEW DELHI: Unitech has formed a panel of five board members to push the demerger of its non-core business into a separate entity as the country’s second-largest developer looks for a pure play in the real estate business.

The company plans to hive off its investments in telecom, hotel and special economic zones into a new offshoot, said a senior executive, requesting anonymity. Unitech owns 33% in Uninor, a telecom JV with Norway’s Telenor.

All Unitech shareholders will get proportionate shares in the new entity after listing. The restructuring will help unlock value for them, he said. Unitech shares closed marginally higher at Rs 76.55. At this price, the company’s market cap is a little more than Rs 18,000 crore. Consultants Ernst & Young and SR Batliboi & Co and Amarchand & Mangaldas will advise the panel in the restructuring.