Larsen & Toubro takes full ownership of L&T Sapura Shipping

Larsen & Toubro (L&T) has completed the buyout of its joint venture partner Sapura Nautical Power Pte Ltd’s stake in L&T Sapura Shipping Private Limited, making the offshore shipping company a wholly owned subsidiary. The deal involves the acquisition of Sapura’s 40 per cent stake, taking L&T’s holding in the joint venture from 60 per cent to 100 per cent.

L&T acquired 6,35,41,233 equity shares from Sapura at a price of ₹19.26 per share, aggregating to a consideration of about ₹122.39 crore. In addition to the equity purchase, L&T Sapura Shipping will fully repay outstanding shareholder loans of approximately 16.93 million US dollars to Sapura as part of the overall transaction structure.

The company said the acquisition is aligned with its strategy to strengthen its presence in the offshore and marine services segment and to improve operational flexibility and asset availability for projects in India and overseas, particularly in the Middle East. By bringing the joint venture fully under its control, L&T aims to better integrate offshore marine construction capabilities with its wider engineering and construction portfolio.

Incorporated in 2010, L&T Sapura Shipping owns and operates a heavy-lift cum pipelay vessel that supports offshore platform installation and subsea pipe and cable laying activities in the hydrocarbon upstream sector. L&T noted that the transaction has been executed on an arm’s-length basis and disclosed under applicable regulatory norms for material events.