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)