India’s largest realty firm DlF will hold a board meeting on Friday to decide on promoters’ proposed sale of 40 per cent stake in rental arm to investment firm GIC in a deal estimated at around Rs 13,000 crore. DlF had announced in October 2015 that promoters would sell their entire stake in DlF Cyber City Developers ltd (DCCDl) that holds the bulk of commercial assets of the group.
The company had in March this year entered into an exclusivity pact with Singapore's sovereign wealth fund GIC to negotiate on this transaction. The promoters holds Compulsorily Convertible Preference Shares (CCPS) in DCCDl, which is worth 40 per cent stake in the rental arm. DlF owns the rest 60 per cent in DCCDl. In a regulatory filing, DlF said that a meeting of the audit committee will be held on August 25 to ‘consider and review the status of the proposed sale of CCPS held by CCPS holders to a GIC affiliate including the key terms and conditions and make appropriate recommendations to the board’.
“The board will in its meeting scheduled to be held later on August 25, 2017, consider the said recommendations and take appropriate decisions, as required,” it added.
If the board approves this deal, this would be second investment from GIC into DlF group. In September 2015, GIC had invested about Rs 2,000 crore in DlF's two housing projects in the national capital. last week, sources had said that both the parties -- DlF promoters and GIC -- could sign definitive agreement by end of this month and pegged the deal value at around Rs 12,000- 13,000 crore.