DLF gets shareholder nod for promoters' Rs 12,000 cr stake sale

New Delhi: Realty major DLF on Saturday said its shareholders have approved the promoters' decision to sell their entire 40 per cent stake in the rental arm for Rs 11,900 crore.

This deal, the biggest in the country's realty space, included sale of 33.34 per cent stake in DLF Cyber City Developers Ltd (DCCDL) to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and a buyback of the remaining shares worth Rs 3,000 crore by DCCDL.

In a filing to the BSE, DLF said a special resolution to approve this transaction was passed at the company's AGM held yesterday. As many as 99.96 per cent of shareholders voted in favour. The promoters, who hold 75 per cent stake in DLF, did not vote on this resolution.

"Institutional investors have overwhelmingly supported this strategic transaction, which will be a game-changer for the company. This will not only remove conflict of interest and reduce significantly the company's overall debt, but create free cash flows," DLF's Senior Executive Director (Finance) Saurabh Chawla told PTI.

"We intend to create a pure play in our commercial and residential businesses," he pointed out. While the residential business will be driven 100 per cent by DLF, the commercial segment will be run in a JV with GIC, Chawla said.

Last month, DLF promoters -- K P Singh and family -- had decided to sell their entire 40 per cent stake in DCCDL for Rs 11,900 crore and will infuse the net proceeds into DLF for debt repayment. Post this deal, DLF will have 66.66 per cent stake in DCCDL and GIC 33.34 per cent in the joint venture.

"Gross proceeds to the promoters from the transaction would be Rs 11,900 crore. The net proceeds to the promoters are estimated to be in excess of Rs 10,000 crore post applicable taxes," DLF had said earlier.

The promoters intend to infuse a substantial part of the net transaction proceeds into DLF. The deal is expected to get completed by November after all regulatory approvals, including those of the CCI.