May 8, 2012 / 5:21 AM / 5 years ago

DLF plans to sell stake in insurance JV: report

A man rides pass an advertisement of Indian property developer DLF Ltd. in Gurgaon June 11, 2007. REUTERS/Adnan Abidi/Files

MUMBAI (Reuters) - 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

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