Welspun sells 40% stake in JV with Leighton for $99 million

New Delhi: Pipe maker Welspun Corp Ltd (WCL) has decided to exit from its joint venture with Leighton Group by selling its entire 39.88 percent stake for a net cash consideration of USD 99 million (Rs 614 crore).

The company has entered into a pact with Leighton Group to sell the stake its subsidiary Welspun Infra Projects Pvt Ltd (WIPPL) had in Leighton Welspun Contractors India Pvt Ltd (LWIN), WCL said in a statement today.

[caption id=“attachment_372618” align=“alignleft” width=“380”]  From Moneycontrol.com[/caption]

“With this sale, LWIN will be renamed as Leighton India,” it said adding the decision to exit LWIN was aimed at repositioning itself in the infrastructure space.

More from Business

Hyundai India’s Rs 27,870 crore IPO oversubscribed by 2.28X, largely driven by institutional investors How Indian fintech startups are driving Malaysia’s UPI-like digital payments revolution

WCL had in 2011 acquired 35 percent stake in LWIN for cash consideration of Rs 470 crore to cash in on opportunities in the Indian infrastructure sector especially Public-Private- Partnership projects. It bought additional stakes in the firm subsequently in a cash-less transaction worth Rs 115 crore.

LWIN was established in 2010.

“The net proceeds received by Welspun will primarily be utilised to deleverage its balance-sheet. Welspun Group intends to concentrate on businesses which have potential to give it scale consistent with its quest for being in leadership position,” it said.

Impact Shorts

More Shorts

Chennai Ranks #1 in Challan Checks: ACKO Insights for Smarter Car and Two Wheeler Insurance Decisions

Tata Harrier EV vs Mahindra XEV 9e: Design and road presence compared

The transaction would be completed in the first quarter of 2014 once the procedural conditions are met.

WCL is currently in four businesses - line pipes, energy, infrastructure and steel. It has already started streamlining its existing business structure.

PTI