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L&T acquires TIDCO's stake in L&T Shipbuilding

Infra News - Published on Mon, 15 Apr 2019

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Larsen & Toubro Limited has purchased the entire stake held by Tamil Nadu Industrial Development Corporation Limited in L&T Shipbuilding Limited, a subsidiary company, on April 10, 2019. TIDCO held 3% stake in LTSB. The same has now been acquired by L&T, to make it a Wholly owned subsidiary. The consideration paid to acquire the stake was INR 32.74 crore.

L&T Shipbuilding was incorporated on November 13, 2007 and currently operates a modern shipyard from Kattupalli, Chennai carrying out shipbuilding and ship related activities. The company undertakes manufacture and building of Warships, Auxiliary Vessels/Crafts and Specialised Commercial Ships. In addition Kattupalli shipyard also undertakes Repairs and Refits of both Defence and Commercial ships.

The acquisition is not a related party transaction. This transaction is being done pursuant to exercise of a put option which TIDCO had on Larsen & Toubro Limited which is the Promoter of L&T Shipbuilding Limited as agreed with TIDCO at the time of inception of L&T Shipbuilding Limited. The transaction is done on an arms length basis.

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Posted By : Rabi Wangkhem on Mon, 15 Apr 2019
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