The Reliance Communications (RCom) board on Sunday approved demerger of its real estate assets into a separate firm, Reliance Properties Ltd.
This is a part of the company’s strategic plan to divest non-core assets and focus on its core wireless and enterprise business. The demerger is subject to shareholder and regulatory approvals, RCom said in a statement.
Reliance Properties would be a separate listed company. RCom shareholders will receive fully-tradeable pro-rata shareholding in Reliance Properties, free of cost, based on their existing shareholding in RCom.
The monetisable value of RCom’s real estate on development is estimated by independent valuers at more than Rs 12,000 crore or equal to Rs 60 per RCom share.
Reliance Properties would develop nearly 135 acres at Dhirubhai Ambani Knowledge City, Navi Mumbai, and 4 acres near Connaught Place, New Delhi. The company would work with global partners to develop the real estate, it added.