New Delhi: Country's largest realty firm DLF on Wednesday announced it will sell back the luxury hospitality chain Amanresorts to the founder Adrian Zecha for USD 300 million (about Rs 1,650 crore), a development that would help the company trim its net debt and focus on core business.
    
DLF, which had bought the hospitality chain from Zecha in 2007 for about USD 400 million, would retain the Aman hotel at Lodhi Road in the national capital. Amanresorts has about 25 properties across the world.
    
This is the second big-ticket non-core assets divestment by DLF in the recent times. In August, DLF had sold a 17-acre prime land in Mumbai to Lodha Developers for Rs 2,727 crore.
    
DLF's arm DLF Global Hospitality Ltd (DGHL) and Adrian Zecha, the founder and Chairman of the Amanresorts Group of luxury resorts, have signed a "definitive agreement to effect Zecha's Management Buy-Out (MBO) of DGHL's 100 percent shareholding in Silverlink Resorts, the holding company for Amanresorts".
    
"The value of the MBO is at an enterprise value of approximately USD 300 million and it does not include the Aman New Delhi property (Lodhi Hotel), which shall be retained by DLF," the company said in a filing to the BSE. The deal would close by February next year.
Reacting to the announcement, shares of DLF rose 1.43 percent to Rs 226.75 apiece on the BSE in the afternoon trading.     

The deal would help the company to cut its borrowings significantly from the current Rs 21,200 crore. DLF is targeting to bring down its debt to Rs 18,000 crore level by the end of this fiscal.
    
The company has been selling its non-core businesses since last couple of years to focus on core real estate business. It had put on sale three big-ticket non-core assets – Mumbai plot, Amanresorts and wind-energy.
    
Out of these three deals, two transactions have been closed and the talks are in advanced stage on wind energy.     

Till September-end of this fiscal, DLF had raised Rs 5,773 crore from sale of non-core assets such as hotel plots and IT Parks/SEzs. The total proceeds after these two major deals would cross Rs 9,000 crore. From sale of wind energy, the company expects about Rs 1,000 crore.
    
The realty major DLF had reported 62.81 percent fall in its consolidated net profit at Rs 138.51 crore for the quarter ended September. The sales during the second quarter fell by 19.46 percent to Rs 2,039.54 crore from Rs 2,532.41 crore in the year-ago period.

(Agencies)

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