Engineering major Larsen & Toubro has issued a statement after news reports claimed that it will sell eight operational road assets as well as a power transmission project to Edelweiss Infrastructure Yield Plus for an enterprise value of Rs 7,000 crore.
L&T, in an exchange filing on Monday, clarified that as part of the strategic plan objectives, it had earlier informed that it proposes to exit from the road and power concession projects. The engineering firm stated that this information is part of the Analyst presentation which is uploaded on their website along with the stock exchanges.
However, L&T said that it has not signed an agreement for sale as mentioned in the media report, which is absolutely speculative.
The report, citing sources, claimed that the deal is awaiting regulatory approvals from the National Highways Authority of India (NHAI) and market regulator Sebi. It further added that the latest move is part of L&T’s asset-light strategy of exiting several non-core assets.
The divestment is a part of L&T’s asset-light model strategy, which has ensured the exit from a number of non-core property. The L&T Infrastructure Growth Initiatives Ltd (L&T IDPL) assets have additionally been a part of that list.
The Edelweiss infrastructure fund has two working platforms — Sekura Roads and Sekura Vitality. Each one is getting used as autos for this buyout. The fairness worth of the highway concessions and energy transmission venture stands at Rs 3,000 crore, the report mentioned.
In 2018, L&T IDPL had floated an infrastructure funding trust (InvIT) — IndInfravit Trust — and roped in Allianz Capital Companions, Canada Pension Plan Funding Board and OMERS Infrastructure as key unit holders. IndInfravit at present holds a portfolio of 13 operational highway assets with about 5,000 lane km in 5 states.
