DLF may divest wind power business to Gaz de France
20 Jul 2009
India's largest real estate company DLF Ltd, which had announced in May that it intended to generate Rs5,500 crore through the sale of some of its non-strategic assets, (See: DLF plans to sell assets worth Rs5,500 crore) is in talks with European energy companies to divest its wind power business.
The Paris-based Gaz de France, a major energy player in Europe and renewable energy group Akuo Energy, also Paris-based, have completed due diligence on DLF's wind power business.
The Economic Times reported that the pricing would be decided by the end of July.
Gurgaon-based DLF, which is being advised by Ernst & Young, had created a separate subsidiary called DLF Wind Power for its wind energy business as a precursor to the sale, hopes to raise at least Rs900 crore from the sale, which is seen as a steep loss since it had invested around Rs1,500 crore in the business.
DLF has an installed capacity of 260 MV and operates in four states - Tamil Nadu, Karnataka, Gujarat and Rajasthan.
The asset sale is aimed at reducing the debt burden of the company, which has been growing over the past several months.