Tata Communications (Tata Comm) has extended the period for scheme of arrangement for de-merger of surplus land from Tata Comm to Hemisphere Properties India Ltd. (HPIL) from March 31, 2019 by one more year.
“We nearby inform you that under the authority granted to the Boards of the Company and HPIL vide Clause 7.14 of the Scheme, the Boards of the Company and HPIL have approved extending the date from March 31, 2019 to March 31 , 2020 within which this scheme is required to be made effective “ said the telecom company in a regulatory filing .
Last year , the National Company Law Tribunal (NCLT) had approved a scheme which will clear the way to de-merge surplus land of nearly 773 acres from Tata Comm earlier known as Videsh Sanchar Nigam Ltd. (VSNL), into HPIL, a decision which is another step towards settling a 16-year old matter.
The NCLT nod came after the Cabinet had cleared infusion of Rs 700 crore as equity and Rs 51 crore as secured loan into HPIL and then transfer stake and management control of the company from the communications ministry to the ministry of housing and urban affairs.
VSNL was divested in 2002 by the government and management control of the company was passed on to the strategic partner Panatone Finvest Limited (PFL), a special purpose vehicle under the Tata Groups of Companies.
At that time, surplus land measuring 773.13 acres located at five locations in four cities, namely, Pune, Kolkata, New Delhi and Chennai, out of a total of 1230.13 acres of land, was kept out of the purview of the disinvestment deal. PFL was to de-merge or hive off the land into a realty company, for which HPIL was created as a special purpose vehicle.
The Tata group holds a stake of nearly 49% in Tata Communications through Panatone, an investment arm that holds over 30% in Tata Sons and Tata Power.
According to an ET report last year , the Tatas may hold 2-3% in the listed entity and the land bank could be worth Rs 10,000-15,000 crore when hived off or sold.―India Finance News