Companies & Sectors
DLF sells Adone Hotel for Rs567 crore to cut mammoth debt

So far, the realty major has raised about Rs4,844 crore through divestments of non-core assets, including plots and IT parks to reduce its mounting debt of Rs22,725 crore

New Delhi: Debt-ridden DLF on Tuesday said it sold its entire stake in its subsidiary Adone Hotels and Hospitality to a Kolkata-based consortium Avani Projects and Square Four Housing & Infrastructure for Rs567 crore, reports PTI.

The realty giant is trying hard to reduce its mounting debt, which stood at Rs22,725 crore as on March 2012. It could manage to reduce debt by a meagre Rs33 crore in January-March quarter this year.

"The company's wholly-owned subsidiary, DLF Hotel Holdings Ltd, has divested its entire shareholding in Adone Hotels and Hospitality Ltd (Adone) for Rs567 crore," DLF said in a statement.

Adone's properties, which include land parcels in Chennai, Mysore, Kolkata and Thiruvananthapuram for hotel developments, were sold to a consortium of Avani Projects and Square Four Housing & Infrastructure Pvt Ltd, it added.

"As a result, Adone and its wholly owned subsidiary, Marla Real Estate Pvt Ltd, have ceased to exist as subsidiaries of the company (DLF)," the statement said.

DLF Hotel Holdings was started as a joint venture with hospitality chain Hilton International. In December 2011, DLF had bought out 26 per cent stake of Hilton JV.

The company said the sale of the shareholding was done in line with DLF's stated objective of divesting its non-strategic assets, the company said.

DLF has raised about Rs1,774 crore in last fiscal through divestments of non-core assets, including plots and IT parks. The divestments proceeds has reached Rs4,844 crore till date.

The overall target of divestment of non-core assets of Rs10,000 crore would be achieved in the medium term.


Suzuki Powertrain to merge with Maruti

There will be no cash outflow from Maruti Suzuki as the merger is proposed to be effected through a share swap agreement with a ratio of 1:70

New Delhi: India's largest carmaker Maruti Suzuki on Tuesday said its sister concern Suzuki Powertrain would merge with the company taking its its Japanese parent Suzuki Motor Corp's stake to 56.2% from 54.5%, reports PTI.

"The Board of Directors of Maruti Suzuki India (MSI) today approved a proposal to merge Suzuki Powertrain India Ltd (SPIL) with MSI," the company said in a statement.

SPIL, which supplies diesel engines and transmissions to MSI, is a subsidiary of Suzuki Motor Corp (SMC).

SMC holds a 70% stake in SPIL, while the rest is held by MSI, it added.

"Consequent to the merger, SMC's holding in MSI will go up from 54.2% to 56.2%... MSI proposes to make a fresh issue of 13.17 million shares to SMC in lieu of SMC's 70% holding in SPIL," MSI said.

The domestic car market leader said there will be no cash outflow from MSI as the merger is proposed to be effected through a share swap agreement.

As per the understanding, the swap ratio has been fixed at 1:70, which means SMC will receive one share of MSI of Rs5 each for every 70 shares of Rs10 each it holds in SPIL.

"It is expected that the necessary regulatory approvals and legal requirements for the merger may be completed by end December 2012. Once the merger is approved, the books of accounts of SPIL will be merged with MSI with effect from 1 April 2012," the company said.

"There are no plans to reduce jobs, following this merger," it added.

With completion of this merger, MSI will bring its entire diesel engine capacity under a single management control.

"All key initiatives to strengthen the business, including sourcing, localisation, production planning, manufacturing flexibility and cost reduction can be controlled, monitored and improved by the MSI management," the company said.

MSI further said the proposed merger will also benefit the combined entity through synergies in areas like finance, capital structuring, administration and consequent reduction of transaction costs.

Reacting to the announcement, the shares of MSI were trading 1.14% up at Rs1,121.90 apiece on the BSE in the afternoon.


Komli Media raises $39 million from Norwest, others

Komli Media said this financing will allow it to materially scale its platform and operations by investing in its real-time bidding, data, analytics, and retargeting solutions to improve ROI for advertisers and yield for publishers

Mumbai: Media technology company Komli Media on Tuesday said it raised $39 million in a new round of investment led by Norwest Venture Partners, which will help it expand its presence and strengthen its technology platform, reports PTI.

Norwest Venture Partners, an already existing investor, led the current round of investment, along with Helion Venture Partners, Draper Fisher Jurvetson, and Western Technology Investment, it said in a statement issued here.

"This financing will allow us to materially scale our platform and operations by investing in our Real-Time Bidding (RTB), data, analytics, and retargeting solutions to improve ROI for advertisers and yield for publishers," the company's chief executive Prashant Mehta said.

In the statement, the company -- which offers solutions across display, mobile, video, social, search and data for advertisers, agencies, and publishers -- claimed it has grown 150% annually since 2009.

It now has over 5,000 leading publishers including exclusive relationships with Facebook and MSN and reaches 270 million users monthly, servicing 1,000 advertisers.


We are listening!

Solve the equation and enter in the Captcha field.

To continue

Sign Up or Sign In


To continue

Sign Up or Sign In



The Scam
24 Year Of The Scam: The Perennial Bestseller, reads like a Thriller!
Moneylife Magazine
Fiercely independent and pro-consumer information on personal finance
Stockletters in 3 Flavours
Outstanding research that beats mutual funds year after year
MAS: Complete Online Financial Advisory
(Includes Moneylife Magazine and Lion Stockletter)