Wednesday, April 21, 2010

Trading & Investing opportunities.

Author: Ilango | Posted at: 7:55 AM | |

2 comments:

MD on April 21, 2010 at 10:06 AM said...

Dear Sir,
I am holding unitech shares. and today @86 i am getting very good profit. but i read following news that unitech is going to offer 1 share of unitech infra to every sharholder of unitech.

Whats your opinion on this ? Shall it be held?

Regards,
MD Desai


Unitech to spin off biz including telecoms
Click to enlarge photo

NEW DELHI (Reuters) - Unitech Ltd (UNITECH.BO : 86.2 +2.7), India's second-largest listed real estate firm, said late Tuesday it would spin off its infrastructure businesses including its investment in a telecoms firm into a separate company as it aims to unlock value.

1. For every one share held in Unitech Ltd, shareholders will get one share of the new firm Unitech Infra Ltd, to be listed on the stock exchanges, said New Delhi-based Unitech in a statement after a board meeting.

Unitech Infra will house the property firm's infrastructure businesses including telecoms, management of amusement parks, construction business, hotels, special economic zones, it said.

Currently, Unitech owns about 33 percent stake in telecoms firm Unitech Wireless, the Indian joint venture partner of Norway's Telenor.

In February, Telenor completed its stake buy in the telecoms venture, taking its holding to an agreed 67.25 percent.

While Unitech will own 35 percent of Unitech Infra, the realtor's existing shareholders will own the remainder.

Unitech said its board has approved constituting a committee to explore potential local and overseas acquisitions.

Prior to the announcement, Unitech shares closed 4.6 percent higher at 83.50 rupees in a Mumbai market.

Ilango on April 21, 2010 at 11:19 AM said...

Dear Mr.Desai,

My suggestion to "book profits" may be read as partial as the trend of the stock is currently "UP" but quite overbought for the short term.

NEWS has already been priced in. However, when they dissect the news and evaluate the "valuation of the combined entity post hiving off telecom unit", it may get rerated or sold off depending on the result.

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