Realty firm DLF Ltd has inked a definitive agreement to dispose of its 74% equity stake in its life insurance joint venture (JV), DLF Pramerica Life Insurance Company, to Dewan Housing Finance.

Financial terms of the transaction have not been revealed as its is pending receipt of regulatory approvals, but media sources familiar with matter said that the potential deal can be valued at nearly INR3.5bn ($59m).

The JV was formed by DLF and Prudential International Insurance Holdings (PIIHL), which launched its operation on 1 September 2008.

DLF group CFO Ashok Tyagi said, "This transaction is in line with our ongoing strategy to divest non-core businesses/ assets."

DHFL chairman and managing director Kapil Wadhawan added, "This JV will help DHFL extend its philosophy of financial inclusion by broadening the range of products and services available to our customers as well as other customers, across India, especially in Tier 2 and 3 cities and towns.

DLF has been divesting its non-core assets and business to concentrate on core business and has already sold its wind energy business and is planning to offload luxury hospitality chain business Aman Resorts.

At the end of 2012-13, the company had 55 branches in India and carries businesses through approximately 5,487 individual agents.