MCA nod for demerger of surplus land to HPIL to benefit shareholders: Tata Comm

Tata Communications on Thursday said the recent MCA nod, which paves the way for demerger about 773.13 acres of surplus land to Hemisphere Properties India, will benefit its shareholders.

The telecom firm said that with implementation of the scheme, HPIL will provide shares to all the shareholders of Tata Communications in the ratio 1:1, mirroring the shareholding of Tata Communications.

"Tata Communications can confirm that the Ministry of Corporate Affairs (MCA) has approved the scheme relating to the arrangement and reconstruction for surplus land filed before them by Hemisphere Properties India Limited (HPIL)...it clears the way to demerge approximately 773.13 acres of surplus land from Tata Communications into HPIL settling a long-standing matter," the telecom firm said in a statement.

As per the scheme, Panatone Finvest, which is a special purpose vehicle under the Tata group of companies, would transfer its HPIL shares.

This means government and the shareholders who had surrendered their shares in Panatone's open offer in 2002 will receive shares to the extent of 25 per cent to government and 20 per cent to shareholders of Videsh Sanchar Nigam Ltd (who surrendered their shares in the 2002 open offer).

About 3.87 per cent will be retained by Panatone Finvest which the company acquired from the open market, the statement added.