LTC was incorporated as a 50-50 joint venture between L&T and Chiyoda in 1994.
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Larsen and Toubro Ltd. (L&T) announced on Tuesday that it has purchased the entire stake held by Chiyoda Corporation in its joint venture L&T-Chiyoda Ltd. (LTC).
L&T said that it has acquired 4.5 million shares of LTC, aggregating to 50 percent of shareholding, from Chiyoda Corp. for Rs 75 crore. The acquisition is expected to be completed by December 31, 2022.
Until now, L&T and Chiyoda held 50 percent shares each in LTC. Hence, purchase of Chiyoda’s share by L&T is a related-party transaction. L&T clarified that the transaction has been done at an “arms length” as the price was determined through valuation by an independent valuer.
L&T also said that approvals have been taken from the audit committee and the company’s board for the acquisition.
LTC was incorporated as a 50-50 joint venture between L&T and Chiyoda in 1994. It was formed with an objective to provide engineering and related services for the hydrocarbon industry to support L&T’s engineering, procurement and construction (EPC) business in the domestic and international market. In the past 27 years, LTC has worked on more than 300 projects including complex refinery and petrochemical processes.
For the year that ended in March 2022, LTC’s turnover was Rs 324.8 crore, while its networth stood at Rs 96.35 crore as on March 31, 2022.
Shares of L&T ended 0.8 percent higher at Rs 2,028.