Larsen & Toubro Hydrocarbon Engineering (LTHEL), which is a wholly-owned subsidiary of Larsen & Toubro (L&T), may be spun off as a separate subsidiary.
L&T is seeking shareholders’ approval to spin off the subsidiary, which is engaged in designing, engineering, procurement and construction solutions on turnkey basis for oil and gas, petroleum refining, chemicals, petrochemicals and fertiliser sectors and pipelines, among others.
On May 22, the L&T board cleared a scheme to create a separate company called LTHEL by spinning off the hydrocarbon businesses along with related assets and liabilities.
It may be recalled that the Bombay High Court directed the company to seek shareholders’ approval to transfer the assets of LTHEL into a separate subsidiary. The company also plans to list the entity post the hive off.
AM Naik, Chairman of L&T Group said the separation of the asset may enable the firm to pursue focused growth opportunities and enhance the overall shareholders value.
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