Oaktree ups bid for DHFL by ₹1,700 cr

Surabhi Mumbai | Updated on December 24, 2020

The move came after Piramal Housing and Finance too increased its bid for DHFL

The bidding war for debt-ridden Dewan Housing Finance Corporation Ltd (DHFL) continues with Oaktree Capital raising its offer by ₹1,700 crore.

Oaktree Capital is understood to be allocating an additional ₹1,700 crore as additional interest income to the financial creditors of DHFL.

Sources close to the development said this would provide a net present value (NPV) of total recovery for lenders at ₹36,410 crore, which would be about ₹1,500 crore higher than that of Piramal Housing and Finance.

The move came after Piramal Housing and Finance too increased its bid for DHFL by allocating additional interest income to the financial creditors and raising its bid for the insurance subsidiary — Pramerica Life Insurance.

Also read: Race for DHFL heats up

Piramal is understood to have increased its bid by ₹1,700 crore. The NPV of Piramal’s bid is estimated at about ₹34,909 crore.

Refined plans

The two suitors for DHFL are understood to have increased their offers in refined resolution plans submitted on earlier this week.

Sources said Oaktree has informed the members of the Committee of Creditors that it is not seeking to increase its bid but just to ensure that the bids can be compared on a consistent basis and its bid is treated fairly and on its merits.

Also read: DHFL bid: Oaktree clarifies stance on 3 key issues to lenders

The CoC of DHFL is also meeting to evaluate the bids and the voting is expected to take place over the next 10-15 days.

It is also hopeful of a turnaround in the financials of the troubled housing finance company with its implementation plan. Oaktree is understood to have informed the CoC that its implementation plan would receive an ‘AAA’ rating given its 100 per cent retail focus, ALM profile compared to peers and ample capital adequacy.

Meanwhile, in a regulatory filing, DHFL said that a meeting of the holders of its rupee denominated US dollar settled 10,000,000,000, 8.50 per cent Secured Notes due 2023 under its Medium Term Note Programme will be held at Hong Kong on January 13, 2021 to consider and approve the procedures and necessary instructions required to authorise and empower the Trustee to vote on the resolution plan on behalf of the note holders.

Published on December 24, 2020

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