Realty major DLF on Wednesday said it will sell luxury hotel chain Amanresorts to the hospitality property's founder and chairman Adrian Zecha, an Indonesian hotelier, for about $300 million (around Rs 1,650 crore), as part of the group's sustained strategy to exit non-core businesses to reduce debt.
The deal, however, does not include the plush Amanresorts property situated on Delhi's Lodhi Road.
The transaction is slated for final closure by February-end next year and is subject to "usual closing conditions," it added.
"The value of the management buyout is at an enterprise value of approximately $300 million and it does not include the Aman New Delhi property (Lodhi Hotel), which shall be retained by DLF Ltd," the company said in a statement.
The latest deal is another milestone in achieving the company's business objectives built around net debt reduction, delivery of all past committed volumes and enhancing product mix through launches of higher margin products.
The closing of the Jawala transaction (sale of a 17-acre plot of NTC Mills land in Mumbai) represents a major milestone in the company's debt reduction objective and will be fully reflected in the company's balance sheets in the coming quarters.
The company is targetting to reduce its debt to around Rs 8,500 crore from Rs 21,220 crore as on September 30, 2012.
Amanresorts currently owns and operates 25 luxury hotels, many with residences, in several countries. Several of these properties such as the famed Amanpuri in Phuket and Amandari in Bali have received numerous awards over the years as the world's leading leisure and hospitality destinations.
DLF shares closed nearly 1% higher at Rs 226 on the BSE.