DLF sells stake on insurance company to Dewan Housing
DLF, the India-based property developer, announced that it has entered into an agreement with Dewan Housing Finance Corp. to divest its interest from a joint venture with a US firm.
In the agreement, Dewan Housing will purchase the 74% stake owned by DLF from DLF Pramerica Life Insurance Company, DLF's joint venture with Prudential International Insurance Holdings Inc..
The company, however, declined to provide more details about the financial transaction, claiming it will be revealed once all the necessary details have been ironed out.
Prudential Life, through its Prudential International Insurance, has shares with 24 other Indian life insurance companies. India's law, however, places a cap on the amount of investment a foreign company can place.
With that, Prudential has 26% share in each of the two dozen insurance companies, the report said.
DLF's offer to sell its stake is part of the company's overall strategy to sell its non-core assets to reduce its debts.