The board of real estate developer Unitech has approved the demerger of its “non-core” operations into a separate entity called Unitech Infra Ltd, which will house its amusement parks and hotels business, construction business, and investments in telecom, transmission towers, hotels, amusement parks, special economic zones, IT parks, logistics parks, industrial parks, property management operations, township management operations. A share swap ratio of 1:1 has been approved, with shareholders of Unitech Ltd getting an equivalent number of shares of face value Rs. 2 each of of Unitech Infra Ltd.

The company operates telecom services in India under the brand Uninor. Norwegian telecom operator Telenor owns 67.25 percent in Uninor, while Unitech owns the rest. Unitech has also announced that it subsequently intends to hive off its telecom investments to a wholly owned subsidiary of Unitech Infra Ltd.

Uninor operates in seven circles – Kerala, Tamil Nadu, Karnataka, Andhra Pradesh, Orissa, Bihar, Uttar Pradesh (East), Uttar Pradesh (West) – and at the end of March 31st 2010, had 4,264,036 subscribers. It launched operations only in December 2009.

For the year 2009, Uninor registered EBITDA losses of NOK 906 million. For 2010, the company expects EBITDA losses to be higher at NOK 4.5-5 billion and capital expenditure in Uninor to reduce to NOK 2.5-3.5 billion. Uninor is targeting EBITDA break-even within 3 years and Operating Cash Flow break-even within 5 years of launch of operations and a market share of 8% by 2018.

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