Economy Dec 19, 2012
New Delhi: Realty major DLF today said it has signed an agreement to sell luxury hotel chain Aman resorts to the hospitality property's founder and Chairman Adrian Zecha for about $300 million (over Rs 1,600 crore).
In a filing to the BSE, DLF said the sale of the hotels and resorts under the Aman resorts brand does not include the Delhi property.
DLF Global Hospitality Ltd (DGHL), 100 percent step-down subsidiary of DLF, and Adrian Zecha, the founder and Chairman of the Aman resorts Group of luxury resorts, are pleased to announce the signing of a definitive agreement to effect Zecha's Management Buy-Out (MBO) of DGHL's 100 percent shareholding in Silverlink Resorts, the holding company for Aman resorts.
"The value of the MBO is at an enterprise value of approximately $300 million and it does not include the Aman New Delhi property (Lodhi Hotel), which shall be retained by DLF," the National Capital-based realty major said.
The transaction is slated for final closure by February-end next year that is subject to "usual closing conditions", it added. Aman resorts has about 25 properties across the world.
DLF has a debt of Rs 21,200 crore and the company has recently said that it is targeting to reduce it to Rs 18,000 crore by the end of this fiscal from sale of two big non-core businesses-Aman resorts and wind energy.
The company had put on block for sale of three big-ticket non-core assets, which included a prime 17-acre plot in Mumbai, Aman resorts and its wind-energy business. It has recently sold the Mumbai plot to Lodha Developers for about Rs 2,700 crore.
It has been selling its non-core assets such as hotel plots and IT Parks/SEZs since last couple of years to reduce its debt and also keep focus on real estate business only. Reacting to the announcement, shares of DLF were trading 0.89 percent up at Rs 225.55 apiece on the BSE.
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