Motilal Oswal: L&T’s Electrical And Automation Proceeds May Easily Take Care Of Any Covid-19-Led Non-Core Funding Risk

BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy..Motilal Oswal Report.Larsen and Toubro Ltd. announced the completion of the much-awaited electrical and automation division sale to Schneider Electric India Pvt.The deal was initially announced two years ago at enterprise value of Rs 140 billion and took time to achieve completion on account of the necessary approvals needed and the fulfillment of other conditions.Barring the subsidiary in Saudi Arabia – L&T Electrical & Automation Saudi Arabia Company Ltd. (LTEASA) – for which local approvals are pending, E&A’s manufacturing facilities in India and related subsidiaries in the UAE, Kuwait, Malaysia, and Indonesia are being transferred to Schneider Electric India.Note that Schneider Electric would use the L&T brand for a specified period as the brand is highly popular and has a strong recall in the Switchgear market.Adjusting for taxes and debt, the company is likely to garner net cash inflow of $1.4 billion as proceeds..Click on the attachment to read the full report:.DISCLAIMERThis report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the brokerage and do not represent the views of BloombergQuint..Users have no license to copy, modify, or distribute the content without permission of the Original Owner.

Motilal Oswal: L&T’s Electrical And Automation Proceeds May Easily Take Care Of Any Covid-19-Led Non-Core Funding Risk

Motilal Oswal: L&T’s Electrical And Automation Proceeds May Easily Take Care Of Any Covid-19-Led Non-Core Funding Risk

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