Monday, July 29, 2013

DHFL buys out DLF’s 74% stake in DLF Pramerica Life

Mumbai-based home loan and housing finance company Dewan Housing Finance Corporation Limited (DHFL) has bought DLF’s 74% stake in the insurance joint venture DLF Pramerica Life Insurance. However, neither of the companies has disclosed the deal amount, but according to the sources close to the development, the amount could be anything around Rs 350-400 crore.
In 2007, the largest reality firm of India, DLF had announced to enter into life insurance sector through a joint venture with US-based Prudential International Insurance Holdings Ltd., a unit of Prudential Financial Inc.
Apart from DLF Pramerica Life Insurance, Prudential International Insurance is present in Indian insurance sector through joint ventures with two dozen Indian life insurance companies, in which Prudential International Insurance holds the maximum permissible foreign holding of 26%.
DLF in a filing to BSE said that it signed definitive agreements on Thursday to sell its 74% stake in the life insurance joint venture DLF Pramerica Life Insurance to DHFL. The stake sale in the joint venture is part of DLF's strategy to divest ‘non-core’ assets to reduce debt. The joint venture had reported a combined loss of over Rs. 250 crore during past two fiscals.

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