Unitech sells power transmission biz to Sterling and Wilson for Rs 100 cr

Crisis-hit realty firm Unitech Ltd Tuesday said the company has sold its power transmission business to Sterling and Wilson for Rs 100 crore.

Unitech Power Transmission is engaged in the business of manufacturing and installation of power transmission lines.

In a regulatory filing, Unitech said it has entered into a share purchase agreement with Sterling and Wilson Pvt Ltd to sell entire issued and paid-up share capital of Unitech Power Transmission Ltd.

When contacted, Unitech spokesperson said the value of the deal is around Rs 100 crore and the amount will be deposited with the registry of the Supreme Court. The apex court had asked Unitech to deposit Rs 750 crore.

The Supreme Court had also allowed Unitech to sell stake in its wholly owned subsidiary Unitech Power Transmission Ltd.

The closing formalities are being completed, the filing said.

After the completion of this transaction, Unitech Power Transmission Ltd will become a wholly owned subsidiary of Shapoorji Pallonji-promoted Sterling and Wilson Pvt Ltd.

Unitech is in a crisis due to default in delivery of housing projects to its customers. Homebuyers have filed cases in various courts, including the Supreme Court, seeking their flats or refund of money.

Unitech's two managing directors are currently in jail.