MUMBAI DLF, India's biggest property company, plans to sell a majority stake in its life insurance joint venture to HCL Group for about 5 billion rupees, the Business Standard reported on Tuesday.
Cash-strapped DLF aims to sell 51 percent in DLF Pramerica Life Insurance Company and use the proceeds to pay a part of its debt, the newspaper said, citing people with knowledge of the situation. KPMG has been appointed as advisor, it added.
DLF has debt of about $4.2 billion and has been trying to reduce the burden by selling its non-core assets including the Amanresorts International hotel chain and a property in Mumbai.
The company owns 74 percent in the joint venture and U.S.-based Prudential International Insurance holds the remaining 26 percent.
A DLF spokesman said the company does not comment on market speculation. A spokeswoman at HCL Group, whose flagship is technology services firm HCL Technologies, also declined comment.
(Reporting by Aditi Shah; Editing by Ranjit Gangadharan)
Trending On Reuters
The global coal industry is trumpeting "cleaner coal" technology to fight bubbling competition from renewable energy, but the high costs of greener plants are proving a major obstacle in selling them to power-hungry countries such as India. Full Article