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DLF promoters, GIC set to sign Rs13,000-crore deal

DLF promoters, GIC set to sign Rs13,000-crore deal
Realty major DLF's promoters are likely to enter into an agreement with Singapore's sovereign wealth fund GIC in the next few weeks to sell their 40 per cent stake in rental business for an estimated Rs 13,000 crore.

DLF, the county's largest realty firm, expects the deal to be concluded by October this year after receiving regulatory and all other approvals, its CFO Ashok Tyagi said.
"We have made significant progress in the proposed transaction. We expect GIC to conclude extensive due diligence in the next few weeks.

"Simultaneously, legal documentation is at an advanced stage which will be completed in the next few weeks," DLF Senior Executive Director (Finance) Saurabh Chawla told analysts on Saturday in a conference call. Chawla said it is very difficult to give an exact timeline as it is a "very large transaction".

In early March, DLF's promoters K P Singh and family had entered into an exclusivity pact with GIC for the deal.

Chawla explained that GIC will approach fair trade regulator CCI for approval while DLF would take approval from minority shareholders. He said the "basic valuation has been frozen" but declined to give a specific number.

Sources had earlier said that the deal is likely to be valued at around Rs 12,000-13,000 crore.

Tyagi informed that the proposed transaction is likely to be concluded and "funds will come into the company by October".

In October 2015, DLF had announced that its promoters would sell their entire 40 per cent stake in DLF Cyber City Developers Ltd (DCCDL), which holds the bulk of the commercial assets of the group.

The promoters would invest a significant amount from this proposed transaction into DLF Ltd, which will use it for reduction of debt that has crossed
Rs 25,000 crore.
PTI

PTI

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