New Delhi, May 1 (IANS) Engineering and construction conglomerate Larsen and Toubro (L&T) on Tuesday signed a deal with French multinational Schneider Electric to sell its electrical and automation (E&A) business to the latter for Rs 14,000 crore ($2.1 billion).
According to a L&T statement here, the transaction would be an all-cash deal, without recourse to loans.
“Larsen & Toubro today signed, subject to regulatory approvals, definitive agreements with Schneider Electric for strategic divestment of its electrical and automation (E&A) business for an all-cash consideration of Rs 14,000 crore,” the statement said.
The electrical and automation business of the company includes low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions, it said.
However, the transaction does not include marine switchgear and Servowatch Systems, according to the company.
Commenting on the deal, L&T Chief Executive S.N. Subrahmanyan said in a statement: “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 stakeholder.”
The company’s E&A business reported a net revenue of Rs 5,038 crore during the financial year 2016-17, the statement said.