DELHI: Canadian asset management firm Brookefield Asset Management is seeking to acquire 100% stake in Unitech Corporate Parks, a London Stock Exchange-listed India-focussed real estate investment firm.
A person close to the development told ET that the asset management firm has offered to buy 60% stake of Candor Investments, a subsidiary of Unitech Corporate Parks (UCP), and 40% holding of Unitech in the investment firm's six commercial assets in India — five SEZs and one IT park.
"The current market cap of UCP, which owns 60% of the assets, is around £139.05 million and the deal with Brookefield will likely be at a premium to this," he added.
Brookefield already owns 16.65% in Candor and is seeking to buyout stakes from other investors that include RBS AA Holdings (UK) Limited (20.08%), SC Fundamental (13.69%), Roveda Holdings (9.01%) and Morgan Stanley Inv Mgmt (UK) (3.32%). Unitech also holds 13.62% in Candor through a company called Nectrus, which it is willing to sell, said the person quoted earlier.
The board of UCP on Thursday said in a filing with the London Stock Exchange that "it has received an approach from a third party expressing interest in a potential acquisition of the company's wholly-owned subsidiary qw Investments Limited and that it is currently in discussions regarding apossible sale of this subsidiary."
"It should be emphasised that the approach is subject to a number of conditions and, accordingly, there can be no certainty that it will lead to a transaction or as to the timing or terms of any agreement," the UCP statement added. A spokesman for Unitech declined comment on whether the company has been approached by Brookefield.
Andrew Willis, senior vice-president, communications and media, at Brookfield Asset Management said: "Our corporate policy is to decline comment on market rumour and speculation, so we have no comment." A spokesman for UCP said, "Please refer to Unitech Corporate Park's regulatory announcement for available information".
UCP had raised around £360 million in an IPO on the London Stock Exchange in December 2006. The money was raised to invest in six SEZs and IT parks—two in Gurgaon, three in Noida and one in Kolkata.