Promoters stake sale in rental arm at final stage: DLF

Realty major DLF today said it has entered the final phase of the process to sell promoters' 40 per cent stake in its rental arm, a deal estimated at around Rs 12,000 crore.
The country's largest realty firm said it is progressing towards advanced stage of discussions with third party institutional investors on the terms for the shareholders agreement.
An audit committee of DLF's board of directors today met to review the progress of promoters' proposed stake sale in its rental arm DLF Cyber City Developers Ltd (DCCDL).
DLF has shortlisted few potential investors to sell promoters' stake in rental arm.

Sources had said Blackstone, Singapore's sovereign wealth fund GIC and Abu Dhabi Investment Authority are among the shortlisted investors.
DLF had announced in October last year that its promoters would sell 40 per cent stake in DCCDL. They would be reinvesting a significant part of the amount realised from this deal into DLF Ltd.

"The Audit Committee at a meeting held on October 21, 2016, took on record the progress made in relation to the transaction.
"The company has now entered the final phase of the process, whereby the persons authorized by the Audit Committee are progressing to advanced stage of discussions with third party institutional investors on the terms for the shareholders agreement and the purchase of the CCPS from the CCPS Holders," DLF said in a filing to the BSE.

The panel authorised two of its members who shall be actively engaged in the process, guide the management team and provide the Audit Committee the final terms and conditions of the transaction for its consideration.
"The Company will make appropriate disclosures upon finalisation of the third party institutional investor(s) and execution of binding agreements in relation to the transaction," DLF said.
DCCDL has about 25-26 million sq ft of leased commercial space with an annual rental income of about Rs 2,250 crore. It also has 20 million sq ft of future development potential.
Promoter group companies will sell 15,96,99,999 Cumulative Compulsorily Convertible Preference Shares (CCPS) of DCCDL, which would result in 40 per cent equity shareholding in DCCDL upon conversion of the CCPS.