11 Aug , 2021 By : Kanchan Joshi
Mumbai: In line with its focus of divesting non-core assets and improving shareholder value, Larsen & Toubro, on Wednesday said it will divest 100% stake in the 99 MW Singoli-Bhatwari Hydroelectric Project owned by its subsidiary L&T Uttaranchal Hydropower Limited (LTUHPL) to Renew Power Services Private Limited, a wholly-owned subsidiary of Renew Power Private Limited. The sale consideration is Rs985 crore.
“This development is a significant step in our effort to unlock the value of some of our power development assets to streamline and allocate capital to create long term value for our shareholders," said D K Sen, whole-time director, Larsen & Toubro.
The transaction is subject to completion of customary closing conditions and the closing is expected to take place before 30 September 2021.
“Given that the asset is already operational, the acquisition is not only value accretive for us but also presents a lower level of risk," said Sumant Sinha, founder, chairman, and CEO of Renew Power, adding that this acquisition strengthens their ability to provide firm and round the clock power to the grid and compliments solar and wind assets, filling up an important position in Renew's portfolio.
"We will be looking to acquire more hydro assets in future as they are the best clean balancing sources for intermittent renewable energy," added Sinha.
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