Reliance Communications to demerge realty business: full statement

Anil Ambani-led Reliance Communications announced on Sunday, July 7 that it will hive off its real estate business into a separately listed unit, Reliance Properties, to focus on its core wireless and enterprise business.

Here's full statement by RCom released late on Sunday:

Reliance Communications (RCOM) today announced that its Board of Directors has in-principle decided on a demerger of the real estate held by RCOM into a separate unit, Reliance Properties Ltd., to unlock substantial value for the benefit of its approx. 2 million institutional and retail shareholders.

The proposed separation of real estate into a separate unit is part of RCOM's strategic plan to divest non-core assets, and focus on its core wireless and enterprise business.

Reliance Properties Ltd. will be a separate listed Company. All shareholders of RCOM will receive fully tradeable pro-rata shareholding in Reliance Properties Ltd., free of cost, based on their existing shareholding in RCom.
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The preliminary and indicative monetisable value of RCom's real estate on development is estimated by independent valuers at over Rs. 12,000 crore ($2 billion), which is equal to Rs. 60 ($1) per RCOM share.

Registered Office: H Block, 1st Floor, Dhirubhai Ambani Knowledge City, Navi Mumbai 400 710.

Reliance Properties will work with leading global partners to develop the real estate, and unlock this value for the benefit of its approx. 2 million shareholders.

The properties proposed to be developed by Reliance Properties include inter alia:

1. Prime land at Dhirubhai Ambani Knowledge City, Navi Mumbai measuring nearly 135 acres, with saleable area of over 15 million sq. ft.

2. Prime property near Connaught Place, New Delhi measuring nearly 4 acres.

The Board has constituted a Committee to consider the matter in detail, and prepare the necessary Demerger Scheme, etc. in consultation with legal and other advisors. The Demerger will be subject to approvals from shareholders, lenders, Courts, etc.
Source:  http://to.ly/mjN4