July 7 (Reuters) - India's Reliance Communications
will spin off its real estate business into a separately listed
unit, a move the country's No.3 mobile phone carrier by
customers said was to focus on its core business.
The unit, Reliance Properties, will work with global
partners to develop real estate, which includes land in Mumbai
and New Delhi, Reliance Communications said.
The value of the real estate when developed was estimated to
be more than 120 billion rupees ($2 billion), the company said.
Shareholders of Reliance Communications will receive free
shares in Reliance Properties on a pro-rata basis, the mobile
carrier said. A panel constituted by its board will work out
further details of the demerger.
Reliance Communications, controlled by billionaire Anil
Ambani, is the most leveraged among listed Indian
telecommunications carriers and has so far been unsuccessful in
its efforts to sell stakes or list companies to cut its debt.
In December, Ambani's Reliance Group and China's Dalian
Wanda Group announced a tie-up to develop real estate and movie
(Reporting by Aradhana Aravindan in MUMBAI and Devidutta
Tripathy in NEW DELHI; Editing by Elaine Hardcastle)