LVMH, HNA, Middle East fund to bid for India DLF’s Amanresorts

Monday, 17 October 2011 00:00 - - {{hitsCtrl.values.hits}}

Reuters: LVMH, the world’s biggest luxury goods group, China’s HNA Group and a Middle Eastern fund are expected to submit binding bids for Indian developer DLF’s luxury hotel chain Amanresorts International, two sources with direct knowledge of the matter told Reuters.

DLF, India’s largest developer, expects bids in excess of $400 million, a company official had told Reuters on Tuesday. The assets for sale include 22 hotels in 12 countries, but not the Aman resort in New Delhi.

The Indian developer has asked for about six final bids in a process managed by Goldman Sachs and Citigroup, which is expected to be completed in a month’s time.

DLF and LVMH declined to comment when contacted by Reuters. A spokesperson from HNA was not reachable.

LVMH, which owns luxury fashion label Louis Vuitton and Moet & Chandon champagne, entered the hospitality business in 2006 and announced last year it was expanding to manage luxury hotel properties in Egypt and Oman.

HNA, with 7 billion euros of revenue in 2010 and assets worth 40 billion euros, owns 11 airlines and invests in airports, hotels and other businesses. It bought a 20 per cent stake in Spanish hotel chain NH Hoteles for 431.6 million euros ($616.5 million) in May.

The identity of the Middle Eastern fund was not immediately available.

DLF, which had net debt of 215.24 billion rupees ($4.4 billion) at the end of June, plans to reduce its debt pile by 25-30 billion rupees in the current fiscal year through sales of non-core assets, it has said.