Realty firm DLF Ltd has announced its exit from life insurance business by selling 74 per cent stake in its joint venture DLF Pramerica Life Insurance to Dewan Housing Finance.
The company did not disclose the amount of the deal, but unconfirmed sources pegged it to be around Rs 350 crore. The company release said that the agreements are subject to regulatory approvals and hence the transaction consideration shall be disclosed post receipt of all such approvals.
DLF had in 2007 announced entry into the life insurance business through a joint venture with US insurance giant Prudential Financial's arm.
The joint venture, where the Indian realty firm held 74 per cent in the joint venture and the rest was owned by Prudential International Insurance 26 per cent, had reported a combined loss of over Rs 250 crore during past two fiscals.
The DLF statement added that the deal is in line with their strategy to divest non-core businesses or assets. It has raised almost Rs 10,000 crore in the last 3 years through divestment of its non-core business.
Shares of DLF closed 0.20 per cent up at Rs 175.10 on the BSE in a market that fell by 1.42 per cent on Thursday.