With or without Aman deal, will meet debt target: DLF

Realty major is believed to have initiated talks with at least four buyers

 

DLF, the country’s largest real estate developer, plans to reduce its debt to Rs 17,500 crore by the end of March 2014, even if a deal to sell its Aman Resorts does not materialise.

“We will achieve the targeted net debt reduction irrespective of Aman,” the company said in an analyst presentation. But, once Aman happens, “We should better the net debt reduction target of Rs 17,500 crore.”

Aman Resorts was up for sale for about two years before the deal with its founder, Adrian Zecha, was announced in December 2012. But Zecha missed two payment deadlines in February and June this year because of insufficient funds. Now, DLF is believed to have initiated talks with at least four buyers, including leading private equity funds, after the exclusivity clause with Zecha came  to an end.

“As Zecha could not close the MBO (management buyout) on June 30, we have removed the exclusivity on the transaction and are currently in negotiations with more than five bidders/investors. Zecha continues to have the  opportunity to close the transaction. We are confident of closure of the transaction in a short period of time at targeted valuations,” DLF said.

The company had struck a deal to sell Aman to Zecha at almost the same price of $300 million (Rs 1,830 crore today) as it was bought some years ago, according to market estimates. But the Aman hotel in Delhi was excluded from the sale deal.  

The company had on Monday reported a 38 per cent decline in consolidated net profit at Rs 181.2 crore for the quarter ended June 30 against Rs 292.8 crore in the year-ago period. The income from operations grew five per cent to Rs 2,314 crore in the first quarter of this financial year against Rs 2,197.7 crore in the corresponding period last year.