Engineering conglomerate Larsen & Toubro on Tuesday said it has signed a definitive agreement with Schneider Electric for strategic divestment of its Electrical and Automation (E&A) business for an all-cash consideration of Rs 140 billion.Engineering conglomerate Larsen & Toubro on Tuesday said it has signed a definitive agreement with Schneider Electric for strategic divestment of its Electrical and Automation (E&A) business for an all-cash consideration of Rs 140 billion.
“Larsen & Toubro, India’s leading engineering, technology and construction conglomerate on Tuesday signed, subject to regulatory approvals, definitive agreements with Schneider Electric, a global player in energy management and automation for strategic divestment of its Electrical and Automation (E&A) business for an all-cash consideration of Rs140 billion,” the company said in its statement.
Divestment from this business is part of L&T’s larger plan to streamline its operations, by divesting from non-core assets.
The E&A business includes manufacturing facilities at Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysore in India as well as in Saudi Arabia, UAE (Jebel Ali, Dubai), Kuwait, Malaysia, Indonesia, and the UK. For the financial year 2016-17, the business reported net revenue of Rs 50.38 billion. The transaction includes all the current business segments of E&A except marine switchgear and Servowatch Systems.
“The divestment of E&A business is in line with L&T’s stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for creating long-term value for our stakeholders. We believe the partnership with Schneider is win-win for our employees, business partners, and shareholders,” said SN Subrahmanyan, chief executive officer and managing director for L&T.
“Larsen & Toubro, India’s leading engineering, technology and construction conglomerate on Tuesday signed, subject to regulatory approvals, definitive agreements with Schneider Electric, a global player in energy management and automation for strategic divestment of its Electrical and Automation (E&A) business for an all-cash consideration of Rs140 billion,” the company said in its statement.
Divestment from this business is part of L&T’s larger plan to streamline its operations, by divesting from non-core assets.
The E&A business includes manufacturing facilities at Navi Mumbai, Ahmednagar, Vadodara, Coimbatore and Mysore in India as well as in Saudi Arabia, UAE (Jebel Ali, Dubai), Kuwait, Malaysia, Indonesia, and the UK. For the financial year 2016-17, the business reported net revenue of Rs 50.38 billion. The transaction includes all the current business segments of E&A except marine switchgear and Servowatch Systems.
“The divestment of E&A business is in line with L&T’s stated intent of unlocking value within the existing business portfolio to streamline and allocate capital and management focus for creating long-term value for our stakeholders. We believe the partnership with Schneider is win-win for our employees, business partners, and shareholders,” said SN Subrahmanyan, chief executive officer and managing director for L&T.
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