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Schneider-Temasek may buy L&T automation biz; PE firms eye Aditya Birla Retail

08 November, 2017

French firm Schneider Electric SE has joined hands with Singapore state investment firm Temasek to acquire Larsen & Toubro’s electrical and automation division for Rs 15,000-17,000 crore ($2.3-2.6 billion).

The Economic Times quoted multiple sources to say that the consortium is in the final stages of negotiation with L&T Electrical and Automation Ltd, and its parent. At 20 times its EBITDA, this will be an expensive bet, even for other global peers to match, one person aware of the development told ET.

L&T’s electrical and automation business comprises low- and medium-voltage switchgear and electrical systems, energy management systems and metering solutions, besides automation solutions. Its products and solutions cater to industries, utility, building and home infrastructure and agriculture. It has five manufacturing facilities in India and six across South-East Asia, West Asia and Europe.

In 2016-17, it recorded gross revenue of Rs 5,367 crore and operating profit of Rs 702 crore.

Aditya Birla Retail
Private equity firms KKR, Bain Capital and TA Associates are in the race to acquire a 13% stake in Aditya Birla Retail Ltd, ET reported citing sources.

The report added that the company is looking at a valuation of Rs 5,000 crore, and the potential investor may have to pump in Rs 650 crore for the stake. The fund infusion will help the retail business cover its capital expenditure for two to three years.

In 2015-16, Aditya Birla Retail’s total income was at Rs 3,532.8 crore, with the company posting a loss of Rs 649.4 crore.

RCom assets
Several private equity firms and peers to Reliance Communications Ltd are in the race to pick up its telecom assets, besides eyeing a stake in the truncated company, Business Standard reported.

According to a debt restructuring plan, RCom is open to a lender consortium picking up a 51% stake in the company after selling the telecom assets, which are already on the block.

The truncated company will primarily be into B2B, which would include data centres, subsea cables and enterprise business.

A Bharti Airtel spokesperson told the business daily that the company is interested in buying a part of RCom’s spectrum and telecom infrastructure.

Private equity firms, including KKR, Carlyle and TPG, have also shown interest in picking up a stake in the company if the banks can wrest control by picking up the 51% stake in the truncated company.

Australia-based Telestra, Telekom Indonesia and Hong Kong’s PCCW are also in the race to acquire RCom’s assets.

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Schneider-Temasek may buy L&T automation biz; PE firms eye Aditya Birla Retail

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