L-;T acquires Chiyoda's entire stake in JV LTC for Rs75 crore; stock adds ~1%

22 Nov 2022 , 01:06 PM

Larsen & Toubro Limited informed that it 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 November 22, 2022.

L&T and Chiyoda each own a 50% stake in LTC. As a result, L&T’s purchase of Chiyoda’s share is a Related Party transaction. The transaction is conducted at arm’s length because the price was determined by an independent valuer, said the company in its exchange filing.

The company stated that the acquisition is expected to be completed by December 31, 2022.

The company will acquire 45,00,000 shares aggregating to 50% of the shareholding for a cash consideration of Rs75 crore.

LTC was operating as a 50-50 joint venture between L&T and Chiyoda. It was established with the goal of providing engineering and related services to the hydrocarbon industry in order to support L&T’s EPC business in the domestic and international markets.

At around 1.19 PM, Larsen & Toubro was trading at Rs2,026.10 per piece, up by 0.76% from its previous closing of Rs2,010.85 on the BSE. The scrip touched intraday high and low of Rs2,032 and Rs2,015.05 respectively.

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