India: L&T sells unit to Berkshire Hathaway-owned IMC International for $27m

Photo: Mint

Engineering major Larsen & Toubro Ltd (L&T) on Wednesday said it has agreed to sell its entire stake in its unlisted unit L&T Cutting Tools Ltd to IMC International Metalworking Companies BV, owned by Berkshire Hathaway Inc., for Rs174 crore.

L&T Cutting Tools, incorporated in 1952, manufactures fabricated metal products.

According to a statement by L&T, revenues of L&T Cutting Tools was Rs169.46 crore in fiscal 2017, which is around 0.15% of the group’s consolidated revenues and on 31 March, the subsidiary had a net worth of Rs42.4 crore.

“Subject to customary closing conditions, the sale is expected to be completed within 90 days from the date of execution of the share sale and purchase agreement,” the statement added.

The sale is part of L&T’s strategy to exit non-core businesses. L&T was in talks with ABB, the Swedish-Swiss multinational to sell its electrical and automation division, The Economic Times reported on 21 June. L&T has operations in engineering, construction, manufacturing, technology and financial services.

On Wednesday, shares of L&T dropped 0.43% to close at Rs1,141.65 on BSE, while the benchmark Sensex rose 1.02% to 31,770.89 points.

The acquirer IMC International is owned by Warren Buffett-led Berkshire Hathaway. In the early part of Buffett’s career at Berkshire, he focused on long-term investments in publicly traded companies but more recently, has turned to buying whole companies. Berkshire now owns a diverse range of businesses and is the fifth-largest public company in the world today.

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This article was first published on LiveMint.com

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Singapore Reporter/s

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).

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

  • 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. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.