L&T to seek shareholders' nod to spin off electrical and automation business

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.