DLF off loads its entire share in DLF Pramerica Life Insurance Company

DLF, a real estate company, which entered into an insurance business in the year 2001, in association with US based Prudential Financial arm, decided to off load its entire share of 74% in DLF Pramerica Life Insurance Company. DLF will sell all 74% of shares to Dewan Housing Finance Limited. Though the amount has not been disclosed, sources estimate the deal to be around Rs. 350 crores.

Company informed the press that they have signed an agreement to sell all its 74% of the shares held. It further clarified that approval of various statutory regulators are pending to be received. Once received, the deal amount will be disclosed.

Mr. Ashok Tyagi – Chief Financial Officer of the Company said that this disinvestment is the part of the company’s overall plan to move away from non – core business and concentrate on its main business, and that company shares a very good repo with Prudential. He also wished them good luck for its future and partnership with new venture Diwan Housing Finance Limited.   Company had reported a loss of more than 250 crores in last two financial years.

In addition to the above, the company earlier exited from its wind energy business and also has entered into an agreement to sell its Aman Resort, a luxury hotel. Through disinvestment process, the company has raised around 10,000 crores in last three years.

Remaining 26% of the shares are held by Prudential. Mr. Tim Feige – Senior Vice President and International Insurance Group Executive of Prudential Financial Incorporation said that the company is committed to build a strong presence in India and will strive their best to serve their customers.

Mr. Kapil Wadhwan – Chairman and Managing   Director of DHFL said that through this joint venture company will widen its products and services to its customers across the country, especially in Tier 2 and Tier 3 cities.