Larsen & Toubro (L&T) has signed an agreement to divest its entire stake in L&T Infrastructure Development Projects Ltd (L&T IDPL) to a platform backed by Edelweiss Alternatives.
L&T IDPL executes power transmission and road development projects under public-private-partnership (PPP) model. It is a joint venture between L&T and Canada Pension Plan Investment Board (CPP Investments) holding 51% and 49% shares, respectively.
L&T will divest its 51% stake in L&T IDPL to a portfolio company of Infrastructure Yield Plus II, an infrastructure fund managed by Edelweiss Alternatives.
“This is in line with L&T’s strategy of reducing its exposure to the non-core asset heavy developmental projects portfolio,” stated L&T.
Edelweiss Alternatives invests in operating infrastructure assets in core sectors of power transmission, renewable energy and highways among others. Post this acquisition, the platform will have a diversified portfolio of 26 assets across 13 states.
“Gross proceeds to L&T and CPP investments from the sale would be approximately INR 27,234 million before closing adjustments and other terms of the transaction,” stated L&T.
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