The Hindu : Andhra Pradesh / Hyderabad News : Larsen &Toubro in no hurry to sell stake in Mahindra Satyam

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Monday, Sep 06, 2010
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Andhra Pradesh

Andhra Pradesh - Hyderabad

Larsen &Toubro in no hurry to sell stake in Mahindra Satyam

Special Correspondent

HYDERABAD: Larsen and Toubro, the construction conglomerate, is not in any hurry to sell its stake in Mahindra Satyam.

L&T has a 4.58 per cent stake in Mahindra Satyam and it is awaiting information from Mahindra Satyam on its progress and development. “We are not going to keep the stake. But, we are also not in any hurry to sell it,” L&T chief financial officer Y.M. Deosthalee told reporters here on Saturday.

He termed as “unfortunate” absence of any information from Mahindra Satyam. The company was exploring various options like selling the stake on tranches, but there was no timeframe fixed for taking a decision on the issue. “We will see how the company is performing and take a call accordingly,” he said.

Replying to queries, Mr. Deosthalee said restructuring of financial services was the first priority of L&T and the model and timing of the process would depend on various factors including the market behaviour. The proposed restructuring of infrastructure business would, however, be taken up after the company achieved financial closure of the Hyderabad Metro Rail project.

“We will definitely unlock the value of financial services, but do so after completing financial closure of the metro rail project, the clock for which started ticking now,” he said. L&T, he said, sounded some banks about the loan requirements for the mega project, estimated to cost over Rs. 12,000 crore and all the public sector banks were willing to participate.

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