DLF eyes Rs 4,500 cr from sale of non-core assets
The Economic Times, November 12, 2009, Page 11
DLF expects to get Rs 4,500 crore through the sale of non-core assets and has already raised Rs 1,064 crore in the first half of the current fiscal.
DLF has been working on the integration of DAL with itself for some time, a person with knowledge of the development said, adding the valuation will depend on the report of a panel of independent directors.
A DLF spokesman said the company "does not comment on market speculations".
Since 2006, DAL has acquired commercial assets valued at over Rs 11,000 crore from DLF. It has raised some Rs 5,000 crore ($1.05 billion) from hedge funds and owes DLF around Rs 2,000 crore.
In May, the Singh family mopped up Rs 3,800 crore by divesting a 9.9% stake in DLF to buy out the investment by DE Shaw. But the deal got delayed due to a tax hitch: since DAL was not a listed entity, the hedge fund was required to pay capital gains tax on the profit. This issue has now been resolved.
After the exit of DE Shaw, a DLF subsidiary will finalise the purchase of the promoters’ entire holding in DAL through a complex share-swap deal. The deal is being routed through a subsidiary as the promoter holding in DLF is above 75% and any issue of fresh shares to promoters is not allowed under listing norms. This effectively means that DLF will issue fresh shares of its subsidiary to the Singh family, said one of the officials. A source said the value of DAL would be around Rs 9,000 crore. After adjusting for DAL’s liability to DLF, loans from banks and the investment by Symphony Capital in the form of preference shares, the net value would be around Rs 2,500 crore against which the shares of a subsidiary company will be issued to the Singh family.
London-based hedge fund Symphony Capital has invested $650 million in DAL through convertible preference shares in two phases.
The company has started discussions with overseas investment banks for DAL’s Singapore listing, a banker said.
The Economic Times, November 12, 2009, Page 11
DLF expects to get Rs 4,500 crore through the sale of non-core assets and has already raised Rs 1,064 crore in the first half of the current fiscal.
DLF has been working on the integration of DAL with itself for some time, a person with knowledge of the development said, adding the valuation will depend on the report of a panel of independent directors.
A DLF spokesman said the company "does not comment on market speculations".
Since 2006, DAL has acquired commercial assets valued at over Rs 11,000 crore from DLF. It has raised some Rs 5,000 crore ($1.05 billion) from hedge funds and owes DLF around Rs 2,000 crore.
In May, the Singh family mopped up Rs 3,800 crore by divesting a 9.9% stake in DLF to buy out the investment by DE Shaw. But the deal got delayed due to a tax hitch: since DAL was not a listed entity, the hedge fund was required to pay capital gains tax on the profit. This issue has now been resolved.
After the exit of DE Shaw, a DLF subsidiary will finalise the purchase of the promoters’ entire holding in DAL through a complex share-swap deal. The deal is being routed through a subsidiary as the promoter holding in DLF is above 75% and any issue of fresh shares to promoters is not allowed under listing norms. This effectively means that DLF will issue fresh shares of its subsidiary to the Singh family, said one of the officials. A source said the value of DAL would be around Rs 9,000 crore. After adjusting for DAL’s liability to DLF, loans from banks and the investment by Symphony Capital in the form of preference shares, the net value would be around Rs 2,500 crore against which the shares of a subsidiary company will be issued to the Singh family.
London-based hedge fund Symphony Capital has invested $650 million in DAL through convertible preference shares in two phases.
The company has started discussions with overseas investment banks for DAL’s Singapore listing, a banker said.
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