L&T to seek shareholders' nod to spin off electrical and automation business
19 April 2011
Engineering and construction major Larsen and Toubro will seek shareholders' approval for transfer of its electrical and automation business to a subsidiary.
The board of L&T, at a meeting held on 6 April, had announced plans to "transfer (the business) to a subsidiary or associate company or to any other entity."
Reports, earlier, had also indicated a possible sale of the unit to buyers like Eaton Corp and Schneider Electric SA, for around Rs12,000-14,000 crore.
"The board of directors of the company at its meeting held on April 6, 2011, has approved seeking of shareholders approval for transfer of the Electrical & Automation (E&A) business to a subsidiary and / or associate company or to any other entity," the company said in filing with the Bombay Stock Exchange (BSE).
L&T's electrical and automation business had gross sales of Rs3,675 crore in 2009-10.
The filing added that the restructuring would be done as per the relevant sections and rules of the Companies Act, 1956.