Country's largest realty firm DLF on Thursday said it will sell its wind turbine business in Gujarat to Bharat Light & Power for Rs. 282.30 crore, thus starting the process to divest its last major non-core asset.
After signing the agreement for sale of this 150 MW wind turbine, the firm is now in the regulatory approval processes to sell its remaining wind power plants in Rajasthan, Tamil Nadu and Karnataka to Bharat Light & Power for a total amount of over Rs. 800 crore.
In a filing to the BSE, DLF said it has entered into a definitive agreement with Bharat Light & Power for the sale.
"The company has entered into definitive business transfer agreement with BLP Vayu (Project 1), a subsidiary of Bharat Light & Power, for transferring of its undertaking comprising of 150 MW capacity wind turbines situated at Kutch, Gujarat on 'as is where is basis' by way of slump-sale for a lump sum consideration of Rs. 282.30 crore," it added.
According to the understanding, the deal includes related assets and liabilities along with relevant long term loans, which will be transferred to BLP Vayu (Project 1) Pvt Ltd.
When contacted, a DLF spokesperson declined to comment on the current outstanding debt of its wind business.
However, according to sources close to the development, the deal is worth over Rs. 500 crore. While Rs. 282.30 crore will be received by DLF, Bharat Light & Power will pay the rest amount to refinance the debt.
Besides the 150 MW Gujarat unit, DLF has wind turbines in Rajasthan (34 MW), Tamil Nadu (33 MW) and Karnataka (11 MW).
Asked about the remaining turbines in other three states, the company spokesperson said: "We are in the advanced stages of negotiations and a deal will be announced soon."
Sources said the company has tied up with Bharat Light & Power to sell its wind power plants in all the four states, with a combined installed capacity of 227 MW, for a total receivable amount of over Rs. 800 crore and an announcement to this effect will be made by next month.
"The company has almost finalised the deal for rest of the three states with Bharat Light & Power. The entire process is under the necessary regulatory approvals and will be announced by the end of next month," a source said.
This is the third major deal by the country's largest realty firm in last six months. With full transfer of its wind businesses to Bharat Light & Power, DLF will complete the process to sell its major non-core assets.
DLF has been selling its non-core businesses since last couple of years to focus on core real estate business and cut its huge debt. It had put on sale three big-ticket non-core assets -- Mumbai plot, Amanresorts and wind-energy.
In August last year, DLF had sold a 17-acre land in Mumbai to Lodha Developers for Rs. 2,727 crore. In December, it announced sale of Amanresorts back to founder Adrian Zecha for about Rs. 1,650 crore.
The deal will help the National Capital-based developer to reduce its borrowings from the current Rs. 21,200 crore. It is targeting to bring down its debt to Rs. 18,500 crore level by the end of this fiscal.
Till September-end of this fiscal, DLF had raised Rs. 5,773 crore from sale of non-core assets such as hotel plots and IT Parks/SEzs.
DLF shares on Thursday closed 1.87% up at Rs. 277.80 apiece on BSE.