Independent directors of UK-listed Unitech Corporate Parks Plc have rejected the nearly Rs 700-crore takeover bid from Indian realty major Unitech, saying the offer undervalues the company.

UCP, which was formed in late 2006 by Unitech, among others, to invest in Indian commercial real estate, is listed on the London Stock Exchange’s (LSE) AIM market.

“The independent directors of UCP… have concluded that the indicative pre-conditional offer at 31 pence per UCP share significantly undervalues the company today and does not represent an offer which they could recommend shareholders to accept,” UCP said in a filing to the London Stock Exchange on Tuesday.

Before making the decision, independent directors looked at various things, including the potential medium-term value of the company’s property portfolio if it were to remain an independent entity.

The medium-term prospects for Indian SEZ office developments and overall valuation of its property portfolio were also considered before concluding that the offer undervalues the firm, the filing noted.

In July this year, Unitech said it has approached UCP’s independent directors regarding a possible cash offer priced at 31 pence per UCP share. The offer then represented a premium of 22.8 per cent to the closing middle market price of 25.25 pence per UCP share on July 26.

The proposal was subject to certain pre-conditions, including raising funds by Unitech for the potential offer.

As per the filing, Unitech has about 40 per cent interest in UCP’s property assets. Nectrus Ltd, a subsidiary of Unitech, holds 4.52 per cent interest in UCP’s share capital and also acts as an investment manager for the firm.

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