India’s L&T to sell unit to Schneider-Temasek consortium for $2.1b

Photo: Bloomberg

Larsen & Toubro Ltd., India’s largest engineering and construction company, has agreed to sell its electrical unit to a consortium led by Schneider Electric SE, people with knowledge of the matter said.

A deal, which values Larsen’s electrical and automation division at about 140 billion rupees ($2.1 billion) including debt, could be announced as soon as this week, said the people, who asked not to be identified because the details are private. Schneider will own 74 percent of the unit when the deal is complete, while Temasek Holdings Pte will own the balance, the people said.

The company, which makes submarines ,and builds airports to nuclear power plants, has been pruning non-strategic and sub-scale businesses. It plans to spur growth through acquisitions in information technology. The Mumbai-based firm had expected to sell the electrical division by March, Chief Financial Officer R. Shankar Raman said in a Nov. 20 interview.

A representative for Temasek said the firm doesn’t comment on market rumors, while spokesmen for Larsen and Schneider declined to comment.

The Economic Times reported earlier that Larsen and the consortium had resumed talks after a months-long lull and that a deal would likely be announced by the end of April, citing people it didn’t identify.

The electrical unit, which makes switchboards, energy meters and management systems, has manufacturing operations in India, the Middle East and Europe, according to its website. The division’s net revenue for the nine months ended December 31 was up 12 percent to 35.9 billion rupees, a company presentation shows.

Bloomberg

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In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

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  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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