Larsen and Toubro acquires JV stake from Chiyoda Corporation

Larsen and Toubro Ltd has purchased the entire stake held by Chiyoda Corporation in L&T-Chiyoda Limited (LTC) a joint venture between Larsen & Toubro Limited (L&T) and Chiyoda Corporation (Chiyoda) in accordance with the Share Purchase Agreement dated 22nd November 2022.

The cost of acquisition is Rs. 750 Million. The acquisition is expected to be completed by 31st December 2022.

L&T and Chiyoda hold 50% shares in LTC. Hence, purchase of Chiyoda's share by L&T is a Related Party transaction. The transaction is done at arms length as the price was determined through valuation by an Independent Valuer.

LTC was incorporated as a 50-50 joint venture between L&T and Chiyoda since 1994. It was formed with an objective to provide engineering and related services for the Hydrocarbon industry to support L&T's EPC business in the domestic and international market In the past 27 years, LTC has worked on more than 300 projects including complex refinery and petrochemical processes.

Shares of Larsen & Toubro Limited was last trading in BSE at Rs. 2010.85 as compared to the previous close of Rs. 2024.40. The total number of shares traded during the day was 29246 in over 1883 trades.

The stock hit an intraday high of Rs. 2032.85 and intraday low of 2006.70. The net turnover during the day was Rs. 58930833.00.

Source : Equity Bulls

Keywords

LarsenandToubro INE018A01030 StakeAcquisition ChiyodaCorporation LandTChiyoda JV