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Larsen & Toubro has signed a share sale and purchase agreement with Toshiba Machine Company Ltd, Japan, to sell its entire stake in L&T Plastics Machinery Ltd (L&TPM).
The move is pending final closing conditions. L&T did not disclose the value of the deal.
The divesture is in line with L&T’s strategic road-map to exit non-core businesses and rationalise its portfolio, the company said.
Toshiba Machine is listed on the Tokyo Stock Exchange. The deal forms part of its strategy to expand globally with a focus on developing countries. L&TPM is a wholly owned subsidiary of L&T and manufactures and markets injection moulding machines.
L&TPM was originally formed as a joint venture with Demag Ergotech GmBH in 2000.
The company acquired joint venture partner’s stake in 2009 and L&TPM became a wholly owned subsidiary of the company.
It recorded sales of Rs 206 crore and profit after tax of Rs 11 crore in the financial year ended March 2012.
Toshiba Machine is involved in the manufacture of injection moulding machines and other machinery.
It has manufacturing units in Japan and China, and primarily caters to the Asian and North American markets.
Bags orders worth Rs 2,051 crore
Larsen & Toubro has bagged another order from the Petroleum Development Oman LLC valued at around Rs 1,302 crore (around $235 million).
The new order involves engineering, procurement and construction (EPC) of the Saih Rawl Depletion Compression (phase 2) project.
The Indian major bagged the order against stiff competition from nine international EPC bidders.
Closer home, Larsen & Toubro has also secured a Rs 749 crore offshore contract from the Oil and Natural Gas Corporation (ONGC) for total EPC and installation of four wellhead platforms.
This contract, too, was won against international competitive bidding.
The Indian project, spread over the Mukta, Bassein and Mumbai High South fields is part of ONGC’s strategy to develop marginal fields to meet India’s rising energy demands.
L&T is scheduled to complete the project by April 2014.
In the case of the international order, the Petroleum Development Oman accounts for more than 70 per cent of the country's crude oil production and nearly all of its natural-gas supply.
The company is a leading exploration and production company in the Sultanate.
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