Real estate company, DLF Ltd has acquired the remaining 26 per cent stake in its joint venture company ‘DLF Hotels & Hospitality' from the affiliates of Hilton International Co. This takes its total holding in DLF Hotels & Hospitality to 100 per cent now.
DLF did not spell out the size of the deal but a source said that the company paid Rs 120 crore for the transaction.
In a notice to the Bombay Stock Exchange, DLF said that “DLF Hotel Holdings Ltd, a wholly owned subsidiary of the company, currently holding 74 per cent equity shares in the joint venture company — DLF Hotels & Hospitality Ltd — has acquired additional 26 per cent equity shares from Aro Participation Ltd and Splendid Property Company, affiliates of Hilton International Co.”
Consequently, DLF Hotels & Hospitality has now become a wholly owned subsidiary, it added. The source further said that DLF Hotels & Hospitality owns plots of land for hotel projects but not finished properties.
A DLF spokesperson said, “This is part of DLF's ongoing non-core divestment strategy. This transaction has been done to take complete ownership of the company and its underlying assets including un-built hotel sites with a view to monetise them.”
In line with its stated objective to sell non-strategic assets and reduce debt, DLF last week had also announced that the company along with its joint venture partner in Galaxy Mercantile Ltd (the owner of IT park in Noida) have received Rs 200 crore towards the first tranche of infusion of capital from IDFC.
IDFC plans to acquire 100 per cent stake in Galaxy Mercantile Ltd, DLF had said adding that balance infusion to be received from IDFC was linked to leasing milestones. Prior to the infusion, DLF Home Developers Ltd had 71 per cent stake in Galaxy Mercantile Ltd. However, DLF had not specified the amount of stake that got diluted in lieu of the first tranche of infusion by IDFC.