Larsen & Toubro (L&T) on Wednesday announced the completion of its acquisition of the remaining 40 per cent stake in L&T Sapura Shipping Private Limited from its joint venture partner, Sapura Nautical Power Pte Ltd, making the offshore marine company a wholly owned subsidiary.
The engineering and construction major acquired 6,35,41,233 equity shares at ₹19.26 per share, valuing the transaction at ₹122.39 crore, L&T said in a filing to stock exchanges. With the completion of the deal, L&T Sapura Shipping is now a 100 per cent subsidiary of Larsen & Toubro.
The acquisition was first announced on January 12, when L&T also disclosed that L&T Sapura Shipping would fully repay an outstanding shareholders’ loan of $16.93 million to Sapura Nautical Power as part of the transaction.
Offshore asset consolidation
L&T said the buyout would enhance operational flexibility and improve asset availability for executing offshore projects in India and the Middle East, strengthening its offshore construction capabilities.
Incorporated in 2010, L&T Sapura Shipping owns and operates a heavy-lift cum pipe-lay vessel used for offshore platform installation as well as subsea pipe and cable laying for the hydrocarbon upstream sector. The offshore marine construction business complements L&T’s core engineering and construction operations, the company said.