Schneider Electric Infra surges 19% as parent co agrees to buy L&T unit

Schneider Electric Infrastructure has surged 19% to Rs 135 on the BSE on back of heavy volumes after parent company Schneider Electric entered into a definitive agreement with Larsen & Toubro (L&T) to buy its electrical & automation (E&A) business for an all-cash consideration of Rs 140 billion.

Schneider Electric Infrastructure is subsidiary of Schneider Electric, in which the French multinational owns a 75% stake.

L&T said it’s E&A business offers a wide range of low and medium voltage switchgear, electrical systems, marine switchgear, industrial and building automation solutions, energy management systems and metering solutions. The E&A business reported net revenue of Rs 50 billion during FY2016-17.

The transaction includes all the current business segments of E&A except marine switchgear and servowatch systems, L&T said in a statement.

Schneider Electric will partner investment company Temasek for the deal, which took merchant bankers to several cities within India and overseas, the Business Standard reported. CLICK HERE TO READ FULL REPORT

At 09:48 am; Schneider Electric Infrastructure was trading 17% higher at Rs 133, as compared to a 0.03% rise in the S&P BSE Sensex. The trading volumes on the counter jumped multiple-fold with a combined 2.28 million shares changed hands on the BSE and NSE so far.

L&T was up 0.37% at Rs 1,406, after hitting a high of Rs 1,425 on the BSE in early morning trade.