Larsen and Toubro sold its 51 per cent stake in L&T Infrastructure Development Project to Edelweiss Alternatives’ portfolio company in order to reduce its exposure to the non-core asset-heavy development projects portfolio.
L&T no longer has a significant stake in the concession subsidiary, L&T IDPL, which began as a joint venture. L&T and the Canada Pension Plan Investment Board (CPPI) had a 51:49 partnership in the company at the start.
According to DK Sen, Whole-time Director and Senior Executive Vice-President for Developmental Projects, the development is a significant step toward the company’s strategic Lakshya 2026 plan. He also added that the project has housed L&T IDPL with an established alternative platform like Edelweiss Alternatives.
L&T IDPL is known for performing high-value PPP-model projects in India. Meanwhile, Edelweiss Alternatives focuses on quality operating infrastructure assets in core sectors of power transmission, renewable energy, and highways.
A portfolio company of Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives, purchased L&T shares. According to a statement, Edelweiss Alternatives will become one of India’s leading infrastructure investors after this acquisition, with a diverse portfolio of 26 assets spread across 13 states.
The acquisition will be completed only after certain conditions are met, including the receipt of all necessary regulatory and other approvals. Before closing adjustments and other transaction terms, the gross proceeds to L and T and CPP investments from the sale would be approximately Rs 27.234 million.
According to reports, the Canada Pension Plan Investment Board (CPP Investments) agreed to sell its 49 per cent stake in L&T Infrastructure Development Projects on December 17.
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