Rolta sells JV stake to partner Shaw for Rs160 crore
19 January 2011
Rolta India Ltd has sold its 50 per cent stake in Shaw Rolta Ltd (SWRL) to its joint venture partner Stone & Webster Inc, a subsidiary of the Shaw Group Inc, for a total consideration of Rs160 crore ($35.5 million).
This includes an immediate payment of Rs125 crore ($27.5 million) and Rs36 crore ($8 million) over the next two years for defined services.
In a filing with the Bombay Stock Exchange (BSE), Rolta said the transaction has helped the company unlock value. Rolta, however, said it would pursue nuclear business in India even more aggressively.
The transaction is effective 31 December 2010.
SWRL paid a dividend of Rs1 crore each to Rolta and Shaw for the last financial year ended 30 June 2010.
SWRL was established as a 50:50 joint venture in 2004 to serve as an offshore engineering centre for Shaw's global projects, and to focus on EPC business in India, including the nuclear energy sector.