Demerger of Tata Communications' surplus land to HPIL gets MCA nod

Tata Communications Ltd on Wednesday said its scheme of arrangement for demerger of surplus land from the company to Hemisphere Properties India Ltd (HPIL) has received approval from the Ministry of Corporate Affairs (MCA).

"The company has been informed by HPIL that MCA has approved the scheme, through its order dated August 5, 2019 and HPIL has filed the order with the Registrar of Companies, New Delhi today," Tata Communications said in a regulatory filing.

"The scheme will now be given effect to in accordance with its terms," the company added.

The Mumbai Bench of National Company Law Tribunal (NCLT) had approved the scheme on July 12, 2018.

As per the demerger plan, the company would transfer the surplus land to HPIL after consequent issue of equity shares by HPIL to the shareholders of the company.

This will be followed by transfer of equity shares of HPIL allotted to Panatone Group Companies (collectively Panatone, Tata Sons Limited and Tata Power Company Limited) to the erstwhile shareholders of the company who had tendered shares in the open offer by Panatone and to the Government of India.

VSNL was divested in 2002 by the government and the company's management control was passed on to the strategic partner Panatone, a special purpose vehicle under the Tata Groups of Companies.

In March this year, Tata Communications had extended the period for scheme of arrangement for de-merger of surplus land from the company to HPIL from March 31, 2019 by one more year.