News: L&T to sell 20% in L&T Infrastructure
(RTR 20/04/2006) Mumbai - The country's largest construction and engineering firm, Larsen & Toubro Ltd, is close to selling a 20 per cent stake in a subsidiary to two private equity investors for Rs 500 crore, a business daily reported on Thursday.
JP Morgan will invest Rs 300 crore and India Development Fund will put in Rs 200 crore in L&T Infrastructure Holdings through a preferential allotment of shares, it said.
The deal would value L&T Infrastructure at Rs 2,500 crore and bring down L&T's holding to 80 per cent, the newspaper said, without citing sources.
A L&T spokesman declined to comment on the report, but Chief Financial Officer YM Deosthalee had told Reuters in February that it was in advanced talks with global financial players to sell 15 to 25 per cent in the unit. It also intends to float the unit later.
L&T Infrastructure, which builds roads, ports and bridges on a build-own-operate basis, had more than 20 projects on hand worth $500 million, he said.
Shares in L&T closed at Rs 2,645.05 on Wednesday, up 43 per cent since the start of January, outpacing a 27 per cent rise in the benchmark BSE index.
JP Morgan will invest Rs 300 crore and India Development Fund will put in Rs 200 crore in L&T Infrastructure Holdings through a preferential allotment of shares, it said.
The deal would value L&T Infrastructure at Rs 2,500 crore and bring down L&T's holding to 80 per cent, the newspaper said, without citing sources.
A L&T spokesman declined to comment on the report, but Chief Financial Officer YM Deosthalee had told Reuters in February that it was in advanced talks with global financial players to sell 15 to 25 per cent in the unit. It also intends to float the unit later.
L&T Infrastructure, which builds roads, ports and bridges on a build-own-operate basis, had more than 20 projects on hand worth $500 million, he said.
Shares in L&T closed at Rs 2,645.05 on Wednesday, up 43 per cent since the start of January, outpacing a 27 per cent rise in the benchmark BSE index.
posted by InCar Group Press Room at 12:16
0 Comments:
Post a Comment
<< Home