Home >Companies >News >6 in fray for DHFL pie in Pramerica

Six suitors have submitted their expressions of interest (EoIs) to acquire troubled Dewan Housing Finance Ltd’s (DHFL’s) stake in Pramerica Life Insurance Co. Ltd (formerly DHFL Pramerica Life Insurance), a person aware of the matter said.

Paytm and Navi Technologies are among the six that have submitted EoIs, the person said, seeking anonymity. US-based distressed asset fund Oaktree Capital and Piramal Group, who have separately submitted bids for DHFL under the Insolvency and Bankruptcy Code, have also shown interest in the insurance business, the person added.

Two UK-based firms have also submitted EoIs though their names could not be confirmed immediately.

Pramerica Life Insurance is a joint venture between a DHFL unit and Prudential International Insurance Holdings, a unit of US-based Prudential Financial Inc.

DHFL Insurance Ltd (DIL) holds a 50% stake in Pramerica Life Insurance.

An additional 1% is held by Yardstick Developers, which is linked to Wadhawan Global Capital, a promoter entity of DHFL. Prudential holds the remaining 49%.

“The process to sell the insurance company will run in parallel (to the sale of DHFL). Banks are hopeful of recovering about 700-800 crore by selling DHFL’s stake in the life insurance business," said the person cited above.

Earlier this year, former Flipkart co-founder Sachin Bansal’s Navi acquired DHFL’s general insurance business for about 100 crore from Wadhawan Global Capital. Paytm has also entered the insurance space by acquiring Raheja QBE, a Mumbai-based general insurance company, in July this year.

The four bidders did not respond to emailed queries.

DHFL is facing claims of 87,031 crore from financial creditors under NCLT.

It has received the highest bid from Oaktree Capital of 31,000 crore for its entire book.

Piramal Enterprises has bid 26,000 crore for the retail loan book, Adani 2,700 crore for wholesale and slum rehabilitation authority (SRA) assets and SC Lowy 2,300 crore for non-SRA assets.

© 2019 All Rights Reserved. Powered by Summit

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.

Click here to read the Mint ePaperMint is now on Telegram. Join Mint channel in your Telegram and stay updated with the latest business news.

Edit Profile
My ReadsRedeem a Gift CardLogout