L&T to Complete Hyderabad Metro Stake Divestment by Fiscal Year-end
Larsen & Toubro announced the planned divestment of its stake in the Hyderabad Metro project, expected to be finalized by the end of the current fiscal year. The Telangana government will take over the project by refinancing debt and acquiring L&T's equity. The divestment aligns with L&T's intention to manage operational losses.
- Country:
- India
Larsen & Toubro, a major player in infrastructure, announced on Friday its plan to divest its stake in the Hyderabad Metro project by the end of the current financial year. This strategic move, shared in a BSE filing, marks a significant shift in the project's management.
The Telangana government is set to take control of the Hyderabad Metro's Special Purpose Vehicle (SPV) by refinancing its existing debt and purchasing L&T Metro Rail (Hyderabad) Ltd's equity at pre-agreed valuations. An understanding in principle has already been achieved, according to official sources on Thursday.
Reports suggest that the state government will assume Phase-I of the Hyderabad Metro Rail project from L&T by investing Rs 2,000 crore into the concessionaire. Additionally, Telangana will take on the company's Rs 13,000 crore debt. L&T had previously revealed its intention to sell its nearly 90% equity stake in the 70 KM Metro project, citing operational and cumulative losses.
(With inputs from agencies.)
ALSO READ
TikTok Takeover: Trump's Plan to Ensure National Security
Telangana's Strategic Takeover: Hyderabad Metro Rail's New Course
Telangana Government Takes Charge: Hyderabad Metro Phase-I Acquisition
CCI Clears IRB InvIT Fund’s Acquisition of Key Tollway SPVs, Anahera Investment
Financial Watchdog Targets Suspicious Trades in Douglas Elliman Takeover Saga
Google News