DLF promoters to sell 40 per cent stake in rental arm to GIC

Real estate major DLF's promoters will enter into an exclusive pact with Singapore's GIC to sell their 40 per cent stake in the company's rental arm, DCCDL Ltd, for an estimated amount of up to Rs 13,000 crore.

The audit committee of the company today approved entering into an exclusive arrangement with an affiliate of Singapore's GIC for the deal. Global investors Blackstone and GIC were in the race to acquire the 40 per cent stake of DLF promoters in DCCDL.

"Based on the presentations made by bankers and legal advisors, the audit committee decided that we should go ahead and enter into an exclusivity arrangement with an affiliate with GIC," DLF group Chief Financial Officer (CFO) Ashok Tyagi told PTI.

The agreement paves way for entering into the next phase of the process to negotiate definitive transaction documents, the company said in a regulatory filing. Tyagi said a definitive agreement is expected to be signed within the next two to three months and the deal may be completed by the second quarter of next fiscal along regulatory approvals.

Asked about valuation, he said only the broad principle has been finalised but not the amount. "We will negotiate and try to close the definitive agreement," Tyagi added. Sources, however, said the deal is likely to be valued around Rs 12,000-13,000 crore.

DLF holds the remaining 60 per cent in DCCDL. The promoters will infuse a significant amount in DLF to cut net debt of over Rs 24,000 crore. The country's largest real estate developer, DLF, had announced in October 2015 that its promoters would sell their

entire stake in DLF Cyber City Developers Ltd (DCCDL), which holds the bulk of the commercial assets of the group.

Last month, DLF had announced that the conversion period for CCPS (compulsorily convertible preference shares ) issued to the promoters in DCCDL has been extended by one year at their request to facilitate the proposed stake sale.

In a bid to allay market concerns over delay in the proposed deal, DLF's Senior Executive Director (Finance) Saurabh Chawla had told analysts that a one-year extension of deadline for conversion of compulsorily convertible preference shares (CCPS) held by promoters in DCCDL did not mean that "the transaction has been delayed by one year".

In late 2009, DLF had announced the merger of its subsidiary DCCDL with promoter firm Caraf Builders & Constructions. DCCDL had then issued CCPS worth Rs 1,597 crore to promoters.

Post conversion of CCPS into ordinary shares, promoters will have a 40 per cent stake in DCCDL. DLF has about 30 million sq ft of commercial area with an annual rent of about Rs 2,700 crore, and of that DCCDL holds about 22 million sq ft of commercial space.

Shoot

Trending News

Xiaomi pumps Rs 3,500 crore into India business

BlackBuck's out to raise $150M in new round, valuation likely to jump to $800 M

With $21 Billion, Azim Premji among world’s top philanthropists

Google agreed on a $45M exit package for India-origin exec accused of sex abuse

HSBC pegs Zomato's valuation at $3.6 billion ahead of Swiggy

PayU in talks to acquire online payments firm Wibmo for $60M

Quikr close to acquiring refurbished goods marketplace Zefo in all-stock deal

What life looks like after a layoff from an IT company

General Atlantic & Tencent pump in another Rs 80 Cr in ed-tech unicorn Byju's

US Senator Warren vows to break up Amazon, Facebook, Google

SoftBank extends tech reach with $5B Latin American fund

Coverfox hits the market to raise $50M in new financing round

Cognizant faces US lawsuit alleging discrimination

China's Huawei sues US over federal ban on using its products

Germany's Delivery Hero acquires Zomato's UAE biz, invests in India ops

Ahead of deadline, debate rages on e-commerce policy

Flipkart rejigs reporting of Myntra-Jabong head Amar Nagaram

Grofers raises fresh funds from existing investors, valuation hits $425M

Sachin Bansal invests Rs 250 Cr each in NBFCs Altico & IndoStar: Report

I-bank Wolet files $800k suit over Flipkart’s Upstream buy

Flipkart FY18 revenue up 50%, but losses grow 5x

Pine Labs in talks to acquire Amazon-backed Qwikcilver for $100M

India can become 2nd largest 5G market in 10 years: Huawei

Alibaba rival Pinduoduo seeks to raise $1.5B

Twitter Q4 revenue grows to $909M as video ad sales surge

Mukesh Ambani to invest $1.4B in West Bengal, will help e-commerce expansion

Etail may lose Rs 40,000 crore, retail to get a 3rd of it

Steadview Capital invests $74M in Ola valuing it at around $6B

Byju’s ups revenue to Rs 490 cr in FY 18, losses drop by half

Agritech startups Sabziwala and LivLush merge their business under new entity Kamatan

Avail Finance lands $17.2M from Matrix Partners & Ola, Freecharge and Flipkart founders

RBI suggests tax sops, self-regulation to build fintech space

Swiggy hires new CEO for its Access Service, gets new CFO

Logistics company Delhivery registers 44% increase in FY17 revenues

WeWork to acquire one of the oldest social networks, Meetup

Qualcomm rejects Broadcom's $103 billion offer

EasyRewardz gets $2 million Series-A funding

'Anemic' iPhone 8 demand drags Apple shares lower

Lending platform Lenden Club gets Rs 3.5cr in Equity Investment

On festive sales, Flipkart says 65% clients from Tier-II cities