L&T to buy Old Lane's stake in subsidiary for Rs 48 cr

Larsen & Toubro on Friday said it has signed an agreement to buy the entire stake of Old Lane Mauritius III Ltd in L&T Infrastructure Development Projects (L&T IDPL) for Rs 47.9 crore.

The share purchase agreement was executed on Thursday, the company said in a filing to BSE.

L&T will buy 2.55 per cent stake (81,90,000 shares) of Old Lane in L&T IDPL.

"At the request of Old Lane, subject to completion of certain conditions precedent, L&T has agreed to purchase its small holding in L&T IDPL as a gesture of goodwill towards a longtime investor," the filing said.

Post the completion of this acquisition, L&T will have 100 per cent shareholding in L&T IDPL.

"The acquisition is not a related party transaction. The transaction is done on an arm's length basis," the filing said.

L&T IDPL, a subsidiary of L&T, was incorporated on February 26, 2001 and has been a pioneer of the public-private partnership (PPP) model of development in India.

The company has since its inception completed landmark infrastructure projects across key sectors like roads, bridges, ports, airports, water supply, hydel energy and urban infrastructure.