India’s largest realty firm DLF has reduced its net debt by Rs 861 crore in the second quarter of this fiscal to Rs 19,508 crore and the company is targeting to cut it further to Rs 17,500 crore level by March next year.
In an analysts’ presentation, DLF also said that it is negotiating with multiple investors to sell the luxury hotel chain Amanresorts and expects to close the transaction soon.
“Sequentially, the net debt has declined by Rs 861 crore from Rs 20,369 crore to Rs 19,508 crore. Given the pipeline of divestitures already executed but not yet closed, we maintain the FY’14 guidance of net debt of Rs 17,500 crore,” DLF said.
Sale of non-core assets and internal accruals helped the company in bringing down the net debt level to below Rs 20,000-crore level.
Realisation from divestment of non-core assets stood at Rs 870 crore during the first six months of this fiscal and the company hopes to garner another Rs 1,000 crore in the second half of this fiscal.
Amanresorts sale
On the status of divesting Amanresorts, DLF said that it is in “negotiations with multiple bidders/investors on the share purchase agreement. Substantial diligence has been completed. Targeting closure of the transaction in near future’’.
In December 2012, DLF had announced the deal with Indonesian hotelier Adrian Zecha to sell Amanresorts for an estimated $300 million and expected to close the transaction by February 2013. Zecha, founder of Amanresorts, missed the February deadline and the exclusivity period was extended till June end.
In July, DLF had walked out of a pact to exclusively negotiate the sale of Amanresorts with Zecha and opened talks with four other potential buyers.
To reduce its debt and focus on core realty business, DLF has been selling its non-core businesses and assets such as plots, hotels, wind mills and insurance venture.
It has raised about Rs 10,000 crore in the last three years through divestment of its non-core assets.