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DLF mulls to sell insurance JV to HCL-news08052012


India's biggest property company DLF, plans to sell a majority stake in its life insurance joint venture to HCL Group for about Rs5 billion, as per the reports.

Cash-strapped DLF aims to sell 51% in DLF Pramerica Life Insurance Company and use the proceeds to pay a part of its debt, as per the reports, citing people with knowledge of the situation. KPMG has been appointed as advisor, it added.

DLF has debt of about $4.2 billion and has been trying to reduce the burden by selling its non-core assets including the Amanresorts International hotel chain and a property in Mumbai.

The company owns 74% in the joint venture and U.S.-based Prudential International Insurance holds the remaining 26%.

A DLF spokesman said the company does not comment on market speculation. A spokeswoman at HCL Group, whose flagship is technology services firm HCL Technologies, also declined comment.
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