DLF seeks binding bids for Aman luxury resort chain: Sources

DLF seeks binding bids for Aman luxury resort chain: Sources

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 21,524 crore ($4.4 billion) at the end of June, plans to reduce its debt pile by 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.