Tata Communications' board today approved proposal to demerge around 773 acres surplus land of government through special purpose vehicle firm Hemisphere Properties India Limited.
"...the broad of directors of Tata Communications Limited at it meeting held today...has approved a draft scheme of arrangement and reconstruction between Tata Communications Limited...and Hemisphere Properties India limited... and their respective shareholders," Tata Communications said in a BSE filing.
HPIL board has already approved the scheme of arrangement and reconstruction between Tata Communications and the company.
HPIL is SPV formed through a cabinet decision in 2005 to execute the transaction on surplus VSNL land.
Tatas had acquired the state-owned company in 2002. However, the deal did not include 773.13 acres of VSNL's land assets, lying unused post acquisition of the PSU.
Under the proposed scheme, HPIL will issue fully paid-up equity to shareholders of the company in ratio of 1:1 with face value of Rs 10 per share.
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