Larsen & Toubro announced the divestment of 100% stake in the 3 x 33 MW (99 MW) run of the river hydroelectric power plant 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 transaction is subject to completion of customary closing conditions and closing is expected to take place before 30th September 2021. The sale consideration is Rs 985 crores, the statement said.
“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, describing the sale of the asset. “It represents our strategic effort to increase focus on our core strengths and exit others to move towards becoming a more asset-light organization.”
Speaking about the acquisition, Sumant Sinha, Founder, Chairman, and CEO of ReNew Power, said, “Given that the asset is already operational, the acquisition is not only value accretive for us but also presents a lower level of risk. It strengthens our ability to provide firm and round the clock power to the grid and compliments our solar and wind assets, filling up an important position in our portfolio. We will be looking to acquire more hydro assets in future as they are the best clean balancing sources for intermittent renewable energy.
Larsen & Toubro is a major Indian multinational in technology, engineering, construction, manufacturing and financial services, with global operations. It operates in over 50 countries worldwide.
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