 "L&T sells entire stake in L&T Infocity to Ace Urban Developers")
Infrastructure giant Larsen & Toubro (L&T) on Thursday said it has sold its entire 89% stake in L&T Infocity Ltd (LTIL) to Hyderabad-based Ace Urban Developers Ltd for Rs 191 crore.
L&T Infocity Ltd is an special purpose vehicle (SPV) formed by the infrastructure major in partnership with Andhra Pradesh Infrastructure Investment Corporation (APIIC) to develop IT infrastructure in the state.
"L&T promoted, an SPV formed in 1997 in partnership with APIIC to develop IT infrastructure in Andhra Pradesh. L&T owns 89 per cent stake in the SPV and the balance is held by APIIC...L&T has exited by divesting its 89% holding in LTIL to Hyderabad based infrastructure development company," it said in a BSE filing.
The SPV had a revenue of Rs 36 crore in 2015-16 with a profit after tax of Rs 7 crore.
The agreement for sale had been entered on February 18, 2016.
L&T said the consideration received from "such sale/disposal (is) Rs 191 crore".
The company said that apart from the IT infrastructure developments in Hyderabad, LTIL has also partnered in three ventures with equity investments.
It said that LTIL holds 58.11% in HITEX Ltd, an exhibition infrastructure venture, and 74% in L&T HiTech City Ltd, an IT special economic zone at Vijaywada.
Additionally, LTIL owns 26% in Visakhapatnam IT Park Ltd, an IT Park at Visakhapatnam.
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