New Delhi: India's largest realty firm DLF has walked out of a pact to exclusively negotiate sale of its luxury hotel chain Amanresorts with Indonesian hotelier Adrian Zecha, after the USD 300-million deal could not be closed within the stipulated timeframe.
DLF has opened talks with four other potential buyers, including some global private equity players, after breaking the exclusivity pact with Zecha, sources said.
In December 2012, DLF had announced the deal with Zecha, the founder of Amanresorts, for an estimated USD 300 million and expected the transaction to close by February 2013.
Zecha missed the February deadline and exclusivity period was extended till June end.
Sources with direct knowledge of the development said with no sight of the deal closing, DLF has walked out of the exclusively pact with Zecha.
Though the exclusivity pact has been scrapped, he still is in fray to buy Amanresorts that has over two dozen properties spread across the world.
A DLF spokesperson declined to comment on whether the company has started talking to other potential buyers to sell Amanresorts, saying that the company does not comment on market speculation.
"Adrian is still in fray. Being a Management-Buy-Out, it is taking time to close the deal," a source said.
Sources further said that Zecha, who has already paid USD 50 million as advance to DLF, has tied up equity investors and is in the process of arranging debt to close the deal.
"The value of the MBO is at an enterprise value of approximately USD 300 million and it does not include the Aman New Delhi property (Lodhi Hotel), which shall be retained by DLF," the realty major had said in December.
To reduce debt and focus on core realty business, DLF has been selling its non-core assets. The company has raised about Rs 10,000 crore in last three years through divestment of its non-core assets.
The company already has exited from the wind energy business. Yesterday, it announced exit from insurance venture by selling 74 percent stake in its joint venture DLF Pramerica Life Insurance to Dewan Housing Finance.
First Published: Friday, July 26, 2013, 20:25