Billionaire Anil Ambani-promoted Reliance Communications is hiving off its real estate assets, estimated to be of around Rs 12,000 crore, into a separate listed company.
Reliance Communications shareholders will receive shares in Reliance Properties in the ratio 1:1.
Indicative value of Reliance Properties shares is Rs 60 per share and market price of RCom share is Rs 130. This translates into almost 50 per cent enhancement / addition in shareholders value of Reliance Communications.
The demerger is aimed at creating large shareholder value, similar value created from the initial demerger of Anil Ambani Reliance Group from Reliance Industries in 2005.
Earlier, Reliance Communications tried to sell its DTH business and enterprise arm to reduce debts.
The proposed separation of real estate into a separate unit is part of Reliance Communications’ strategic plan to divest non-core assets, and focus on its core wireless and enterprise business.
Reliance Properties will be a separate listed company and will work with global partners to develop the real estate.
Shareholders of Reliance Communications will receive fully tradeable pro-rata shareholding in Reliance Properties Ltd, free of cost, based on their existing shareholding in Reliance Communications.
The properties proposed to be developed by Reliance Properties include prime land at Dhirubhai Ambani Knowledge City in Navi Mumbai measuring nearly 135 acres, with saleable area of over 15 million square feet and its another property near Connaught Place in New Delhi spread across nearly 4 acres.
