On Wednesday, Larsen & Toubro Ltd. (L&T) announced the divestment of 100% stake in the 3 x 33 MW (99 MW) run of the river hydroelectric power plant owned by its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) to Renew Power Services Private Ltd, a wholly owned subsidiary of Renew Power Private Ltd for ₹985 crore.
This is in line with L&T stated intention to divest non-core assets & improve shareholder value.
The transaction is expected to close before 30 September 2021, the company said in a filing.
“This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long term value for our shareholders,” said D.K. Sen, Whole-time Director, L&T,This is part of the company strategy to focus on its core strengths and exit others to move towards becoming a more asset-light organisation, he said.
Sumant Sinha, Founder, Chairman and CEO, ReNew Power, said, “Given that the asset is already operational, the acquisition is not only value accretive for us but also presents a lower level of risk.
He said his company would be looking to acquire more hydro assets in future.
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