DLF has acquired Caraf Builders & Constructions (‘Caraf’), which owns DLF Assets Private (DAL), from promoter KP Singh’s family. DLF’s board approved the transaction recently. DLF’s wholly owned subsidiary DLF Cyber City will acquire Caraf in a cashless transaction.After the transaction, the promoter stake in Cyber City will be 40%, while DLF’s stake will come down to 60%.
“The valuation ratio approved by the board accepted the relative valuation of Cyber City and Caraf in the ratio of 60:40. Consequently, the company would have an economic interest in the integrated entity of 60% with the residual 40% economic interest being held by the shareholders of Caraf (who are the promoters of the company),” DLF said in a statement. The transaction is aimed at consolidating the group’s rental assets under DLF to ensure a steady cash flow to DLF. It will also help in eliminating the conflict of interest between promoter entities and DLF,while facilitating management inte-gration and overlap elimination.
Courtesy:- ET Realty dt:- 18/12/2009
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