 "Larsen & Toubro, L&T")
Larsen & Toubro (L&T) on Tuesday said it has bought the entire stake held by Chiyoda Corporation in L&T-Chiyoda Ltd for Rs 75 crore.
L&T-Chiyoda Ltd (LTC) is a joint venture between L&T and Japan-based Chiyoda Corporation (Chiyoda).
The buyout is likely to be completed by the end of next month, the engineering and construction conglomerate said in a regulatory filing.
"The acquisition is a related party transaction and approval of the audit committee and board of L&T have been taken," the filing said.
LTC was formed with an aim to provide engineering and related services for the hydrocarbon industry to support L&T's EPC business in the domestic and international market.
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In the past 27 years, LTC has worked on more than 300 projects, including complex refinery and petrochemical processes.
"L&T and Chiyoda hold 50 per cent shares in LTC. Hence, purchase of Chiyoda's share by L&T is a related party transaction. The transaction is done at arms length as the price was determined through valuation by an independent valuer," the filing said.
As on March 31, 2022 LTC's turnover was at Rs 324.8 crore and networth was at Rs 96.3 crore.
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