Larsen & Toubro buys back JV stake from Chiyoda Corpn. Japan

Mumbai: Larsen and Toubro (L&T) on Tuesday said 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.
The cost of acquisition is Rs 750 million. The acquisition is expected to be completed by December 31, 2022.
L&T and Chiyoda hold 50 percent shares in LTC. Hence, purchase of Chiyoda’s share by L&T is a Related Party transaction. The transaction is done at arm’s length as the price was determined through valuation by an Independent Valuer.
LTC was incorporated as a 50-50 joint venture between L&T and Chiyoda since 1994. It was formed with an objective to provide engineering and related services for the Hydrocarbon industry to support L&T’s EPC business in the domestic and international market.
(UNI)