Engineering and Construction Leader, Larsen & Turbo has signed a definitive agreement with Schneider Electric aimed at strategic divestment of its electrical and automation (E&A) business for an all-cash deal of Rs 14,000 crore.
While the deal is subjected to regulatory approvals, the firm has reported a net revenue of Rs. 5,038 crore in last fiscal.
Management has said that divestment of E&A business is in-line with L&T’s intent of unlocking value within the existing business portfolio and will fabricate capital and management focus for creating long-term value for stakeholders.
The proposed transaction has incorporated all current segments of E&A excluding marine switchgear and Servowatch Systems.
AM Naik, Group Chairman, Larsen & Toubro said,
L&T’s E&A has a strong presence for decades and is well-positioned to continue its growth trajectory with outstanding technologies, brands, people and global presence. We believe that our partnership with Schneider Electric will further boost business prospects for E&A business and its employees.
Over the years, the company has built strong development and research capabilities and currently engages in a diverse portfolio offering electrical systems, marine switchgear, industrial and building automation solutions and metering solutions. It also has a wide network of channel partners across India as well as international market.
Larsen & Turbo is currently up by Rs. 9.85 or 0.7% and is trading at Rs. 1,410.45 on BSE against its previous closing of Rs. 1,400.60