Unitech in a spin

Unitech is spinning off its businesses, including its telecoms operations, into a separate company.
Morgan Stanley, UBS and IDFC Capital are advising Unitech on the transaction. Ernst & Young advised the firm on the share entitlement ratio.
After getting…

Unitech is spinning off its businesses, including its telecoms operations, into a separate company.

Morgan Stanley, UBS and IDFC Capital are advising Unitech on the transaction. Ernst & Young advised the firm on the share entitlement ratio.

After getting regulatory approvals, Unitech Infra would be listed on the Bombay Stock Exchange and the National Stock Exchange.

Under the restructure, a company called Unitech Infra will hold the group’s telecoms, amusement park, construction and hotel assets. Unitech’s telecoms JV with Norwegian giant Telenor, in which Unitech holds 33%, will be part of the new firm.

Unitech will hold a 35% stake in Unitech Infra.

For every one share held in Unitech, shareholders will get one share of the new entity Unitech Infra.

Unitech Infra will have a gross debt of Rs3.5bn (US$78m) and a net worth of Rs49.8bn (US$1.1bn), according to Unitech.