Engineering conglomerate Larsen & Toubro (L&T) on Wednesday plans to divest its entire stake in L&T Cutting Tools for Rs 174 crore. The sale is part of L&T’s larger strategy to focus on core business segments.
“The company has entered into a definitive agreement for the divestment of its entire stake in in L&T Cutting Tools, a wholly owned subsidiary, with IMC International Metalworking Companies BV, a company owned by Berkshire Hathaway Inc,” the company said in its statement to BSE.
L&T which has diversified into various segments and business interests in the last one decade, now looks to streamline its business divisions. Part of the streamlining strategy is to divest from divisions and subsidiaries, which are not core to the company’s operations.
L&T Cutting Tools in the last financial year reported a revenue of Rs 169.46 crore and constituted close to 0.15 per cent to L&T’s total revenue in the same period. L&T Cutting Tools, the company said, had a net worth of Rs 41.4 crore as of March 2017.
The deal is expected to be complete within three months of the execution date of the share sale and purchase agreement.
Source: Business-Standard 