DLF promoters to sell 40% stake in firm's rental arm

The promoters of realty major DLF will sell 40 per cent of their stake in the firm's rental business to an affiliate of GIC Real Estate, Singapore, post the receipt of shareholder and other regulatory approvals.

The decision to allow the sale by the promoters was taken by the company's board on Friday after a review was conducted by an "Audit Committee" on the detailed terms of the proposed agreement with Reco Diamond, an affiliate of GIC Real Estate, Singapore.

As per a filing made to the BSE on Friday, institutional investors (promoters) will sell 40 per cent of their equity shareholding through "Cumulative Compulsorily Convertible Preference Shares" (CCPS) in DLF Cyber City Developers Limited (DCCDL).

According to the realty major, the transaction implies an enterprise value of Rs 35,617 crore for DCCDL, translating into equity value of approx. Rs 30,200 crore.

"Post completion of series of steps as contemplated in the transaction, DLF shall hold 66.66 per cent equity shares (up from 60 per cent on a fully diluted basis earlier) and Reco Diamond shall hold 33.34 per cent equity shares in DCCDL," the statement said.

"The gross proceeds to the sellers from the transaction would be approx Rs 11,900 crore approximately, which includes secondary sale of equity shares (post conversion of CCPS) to Reco Diamond for Rs 8,900 crore approximately and two buybacks of CCPS by DCCDL for Rs 3,000 crore - out of which one buyback shall be before closing and one shall be 12 months thereafter."

--IANS

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