Infrastructure major Larsen & Toubro (L&T) Wednesday said it will offload its entire stake in L&T Kobelco Machinery Private Ltd for around Rs 43.5 crore.
Larsen & Toubro (L&T) and Kobe Steel have signed an agreement to this effect.
L&T Kobelco Machinery Private Ltd (LTKM) is a joint venture between L&T and Kobe Steel, wherein Larsen & Toubro holds 51 per cent stake.
"L&T has entered into a definitive agreement with Kobe Steel Ltd, a company registered in Japan, on April 2, 2019, for the divestment of its entire stake in L&T Kobelco Machinery Private Limited," L&T said in a regulatory filing to the BSE.
Following the divestment of stake, LTKM will cease to be L&T's subsidiary.
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LTKM's total income during the year 2017-18, was recorded at Rs 82.03 crore, constituting around 0.07 per cent of the consolidated total income of L&T for the financial year 2017-18, the company said.
LTKM had reported a net worth of Rs 40.13 crore as on March 31, 2018, of which L&T's 51 per cent share of was Rs 20.47 crore, the company added.
It said the sale of shares is expected to be completed before the end of this month.
L&T said the "consideration for sale" is Rs 43.5 crore.
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