L&T to sell subsidiary to ESAB Holdings for Rs 522 crore

A sign of Larsen and Toubro (L&T) is placed on a road divider in Mumbai, India May 25, 2016. REUTERS/Shailesh Andrade/File Photo - S1AETJBPPOAA

Larsen & Toubro on Monday said it has entered into a definitive agreement with ESAB Holdings Ltd for selling its entire stake in wholly-owned arm EWAS Alloys Ltd for Rs 522 crore.

The engineering giant in a filing to BSE said that it has "entered into a definitive agreement with ESAB Holdings Ltd, a company registered in the United Kingdom, on October 11, 2017 for the divestment of its entire stake in EWAS Alloys Ltd".

EWAC Alloys is a wholly-owned subsidiary of Larsen & Toubro Ltd.

The share purchase agreement was executed today, the company said adding that the completion of the sale is subject to customary closing conditions.

"...the sale of shares is expected to be completed within 60 days from the date of execution of share purchase agreement," the filing said.

The buyer, the company said, does not belong to belong to promoter or promoter group companies. During the last fiscal, total revenues of EWAC Alloys Ltd was at Rs 211.2 crore which was 0.19 per cent of Larsen and Toubro's total revenue.