Deal Wont Include Will Help DLF Shed Part Of Rs 14,000 ' Cr Debt Pile
MALAYSIAN sovereign wealth fund Khazanah Nasional Berhad is close to buying a controlling stake in Aman Resorts from debt ' laden DLF for $300-350 million, people familiar with the matter said.
A person privy to the details of the negotiations said the deal may not include Aman's If conducted, the deal will help India's largest real estate company cut its Rs 14,000-crore debt pile.
DLF is being advised by Goldman Sachs while JPMorgan is advising Khazanah.
"As per company policy, we do not comment on market speculation," a spokesperson for DLF said in response to queries form ET NOW. Khazanah could not be reached for comment.
DLF bought its 97% stake in Aman in 2007 for $400 million. Aman's founder Adrian Zecha owns the remaining 3% stake.
Founded in 1988, Aman has, over the years, built up a loyal base of wealthy patrons, commonly known as 'Amanjunkies'. Aman properties are characterized by a small number of rooms, minimalist architecture and a high staff-to-guest ratio. The group's hotels are typically devoid of reception desks or lobbies and are aimed at conveying a feeling of a private residence to guest.
Aman operaters 23 luxury hotels across Thailand, Bhutan, Combodia, Loas, Montenegro, Morocco, Phillipines, Sri Lanka, the Turks and Caicos Islands, and the US.
Khazanah, which is currently locked in a battle with India's Fortis Healthcare for control of Singapore-based Parkway Holdings, manages a portfolio of companies worth over $20 billion, according to details available on its website. They include Telekom Malaysia, Axiata and CIMB Group, Malyasia's second-largest financial services company. Khazanah also owns a stake in India's Apollo Hospitals.
A banker close to Khazanah said the fund has a mandate to make investments in new sectors and diversify itsto include companies outside Malaysia.
It is learnt that DLF will use the proceeds from the sale of Aman Resorts to reduce the debt currently stands at Rs 14,821 crore following the consolidation of liabilities of DLF Assets Limited.
DLF confirmed May that it is looking to sell Aman Resorts and cut its debt by Rs 5,000 crore through the sale of non-core assets and refunds from various government authorities. The company's management had also told analysts in a conference fall that it aims to become a zero-debt company by 2014.
Courtesy by: The Economic Times Dtd: June 17, 2010
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