Larsen & Toubro Ltd.

Larsen & Toubro (L&T) has entered into a share sale and purchase agreement with HDFC ERGO General Insurance Company (HDFC ERGO) for sale of its entire stake in L&T General Insurance Company (LTGI), a-wholly owned subsidiary of the company for a total consideration of Rs 551 crore. The transaction envisages share sale by the company to HDFC ERGO and subsequent merger of HDFC ERGO and LTGI. The share sale is part of the company’s strategy of exiting from its non-core activity.

The transaction is subject to various approvals, including approval of Insurance Regulatory and Development Authority of India and Bombay High Court. Upon closing, the group would exit from the general insurance and health insurance business.

LTGI Gross earned premium income during the year 2015-16 was Rs 483 crore, constituting around 0.5% of the company’s consolidated revenue for the year 2015-16 and reported a net worth of Rs 142 crore as on March 31, 2016.