Realty giant DLF today said it has completed the integration of promoter group company Caraf Builders and Constructions with its subsidiary Cyber City Developers, a development which would result in consolidation of all rental businesses under one umbrella.
DLF's board of directors had approved the integration (including by way of merger/amalgamation) on December 15, 2009. In the combined entity, DLF would have 60 per cent stake and rest would be with promoters, the K P Singh family.
"We wish to notify that with effect from March 19, 2010, Caraf (along with its subsidiaries) has become a wholly-owned subsidiary of Cyber City, our subsidiary, thus giving effect to integration process," DLF today said in a filling to the Bombay Stock Exchange.
Caraf is the holding company of DLF Assets Ltd (DAL), which was set up to buy commercial properties of DLF. DLF plans to list DAL separately on the Singapore Stock Exchange.
DLF promoters had planned to list DAL in Singapore last year, but it was shelved because of the global economic slowdown. According to sources, the company has revived the process again and plan is to raise over $1 billion.
In December, DLF had said that integration would help in consolidation of group's rental assets under its management, which will further enhance the company's stable rental incomes and cash flows. It would also eliminate perceived conflict of interest between promoter entities and DLF.