|
| DLF plans integration of DAL |
| Press Trust of India / Mumbai Dec 14, 2009, 20:10 IST |
|
The country's largest realty firm, DLF, is kicking off an integration plan with DLF Assets (DAL), a separate company set up by billionaire K P Singh, by buying out promoters' stake in the latter.
The DLF promoters had invested in DAL through Caraf Builders & Constructions and DAL has been set up to buy commercial properties of DLF.
In a communique to the Bombay Stock Exchange, DLF said that a board meeting will be held tomorrow to consider integration of Caraf Builders & Constructions, which is a promoters group company, with its wholly-owned subsidiary DLF Cyber City Developers.
Earlier in April, DLF had suspended further property sales to DAL and appointed a committee of independent directors to evaluate various options for future relationship with DAL in the wake of mounting debt of the latter and a slowdown in commercial leasing.
The announcement by DLF comes days after DAL promoters bought the stake of global investment firm DE Shaw in DAL for over $470 million. DE Shaw had invested $400 million in DAL in 2007.
The board's decision on the proposal will pave DAL's listing on the Singapore Stock Exchange. The promoters had planned to list DAL on Singapore Stock Exchange on REIT (real estate investment trust) model, but had to shelve the move due to global economic slowdown. The process of getting listed has been revived again.
Besides DE Shaw, DAL had raised $200 million from a fund sponsored by now defunct investment banking firm Lehman Brothers, which later sold the stake to SC Asia. Last year, DAL raised $450 million from Symphony Capital.
In a statement issued in late April, DLF said: "Due to the impact of global slowdown on commercial leasing, the board of directors of DLF deemed it fit to review the strategic relationship with DAL," the company had said.
"The committee of independent directors are expected to complete their evaluation and recommend the most effective value accretive course of action for DLF shareholders based on the principles of arms length and fair market," it had said.
DAL had bought over 5 million sq ft of area from DLF and still owes about Rs 2,500 crore to it.
|
|
|
|
|
|
|
|
|
|
 Read Business news in |  |
|
|
|
|
|
|
Advertisements |
|
|
|
|
|
|
|
|
|
|
Content Guide
