Mumbai/Hong Kong: DLF, the country’s largest developer, has asked bidders for its luxury hotel chain Amanresorts International to make binding offers within two weeks in a deal that could fetch at least $400 million, sources with direct knowledge of the matter said.
DLF has asked for about six final bids from a pool of 10 non-binding bids in a process managed by Goldman Sachs and Citigroup, which is expected to be completed in a month’s time, one of the sources said.
Private equity firms, luxury hotel groups and sovereign wealth funds submitted non-binding bids, sources said.
Malaysian sovereign wealth fund Khazanah Nasional was set to buy a stake in Aman for around $300 million last year, Indian media said, while LVMH, the world’s biggest luxury goods group, declined to comment last month on a Bloomberg report it was bidding for the chain.
DLF expects bids in excess of $400 million, a company official told Reuters. The assets for sale include 22 hotels in 12 countries, but not the Aman resort in New Delhi.
DLF, which had net debt of Rs 21,524 crore ($4.4 billion) at the end of June, plans to reduce its debt pile by Rs 2,500-3,000 crore in the current fiscal year through sales of non-core assets, it has said.
A spokesperson for DLF declined to comment on the sale when reached by Reuters.