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Singapore’s GIC to buy DLF rental arm stake for $1.8 billion

Staff Writer |
India’s largest property developer DLF’s audit committee has approved a transaction by which its promoters will sell their stake in its rental arm DLF Cyber City Developers (DCDDL).

The stake will be sold to Reco Diamond, an affiliate of GIC Real Estate, Singapore, for a gross value of Rs 11,900 crore, the company said in a BSE filing.

The transaction implies an enterprise value of Rs. 35,617 crore for DCCDL, translating into equity value of around Rs. 30,200 crore. That's a deal worth $1.8 billion.

After the completion of certain procedures, DLF shall hold 66.66% equity shares and Reco Diamond the remaining 33.34% in DCCDL.

In March, DLF had said that its promoter firms Rajdhani Investments and Agencies, Buland Consultants and Investments, and Sidhant Housing and Development were in exclusive talks with Singapore sovereign fund GIC Pte Ltd to sell 40% stake in DLF Cyber City Developers (DCDDL), a ‘game-changer’ deal that would help the developer significantly reduce its debt.

With the transaction, DLF promoters will convert its compulsorily convertible preference shares (CCPS) in subsidiary DCCDL into equity shares and sell them to the GIC affiliate.

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