The deal between India’s largest realty developer DLF and Singapore’s sovereign wealth fund GIC for a 40% stake in DLF Cyber City Developers (DCCDL) has entered the final stages and is likely to be signed soon. “It (the deal) may be put in place any moment. We are just waiting for the final signature,” Rajeev Talwar, managing Director of DLF said on the sidelines of a press conference. DCCDL is DLF’s rental arm, and the stake sale is valued at around Rs 12,000-Rs 13,000 crore, Talwar added.
In October 2015, DLF had announced that its promoters would sell their entire stake in DCCDL, which holds the bulk of the commercial assets of the group.
The promoters had in March this year entered into an exclusivity pact with GIC to negotiate on this transaction.
The promoters would infuse a large portion of proceeds from this proposed deal into DLF, which in turn would use this amount to cut its net debt that has reached nearly Rs 26,000 crore.
After the agreement between the two parties, GIC would approach the Competition Commission of India (CCI) for approval, while DLF will have to seek shareholders nod, he said.
For the quarter ended June 30, 2017, DLF reported net profit of Rs 109.01 crore, down 58.37%, against Rs 261.85 crore in the corresponding quarter last year. Net sales of the company increased 9.65% year-on-year to Rs 2047.70 crore during the quarter under review. DLF’s net debt jumped by `802 crore in Q1FY18 to Rs 25,898 crore due to poor housing sales and continued outflow in construction of various projects, the company said.