Larsen & Toubro Ltd has executed a Business Transfer Agreement with its wholly owned subsidiary Vyoma.AI Ltd for transferring its Data Centre and Cloud Services Business on a going-concern basis.
The business will be transferred through a slump sale for an aggregate consideration of ₹1,400 crore, subject to closing adjustments. Vyoma will issue fully paid-up equity shares to L&T based on a valuation determined by an independent valuer.
LTNSPL stake to be divested
L&T, Vyoma and wholly owned subsidiary L&T Network Services Pvt Ltd (LTNSPL) have also entered into a Share Purchase Agreement.
Under the agreement, L&T will divest its 100% equity stake in LTNSPL to Vyoma for ₹30 crore, subject to closing adjustments.
Deal to close by October 31
The ₹30 crore consideration will also be discharged by Vyoma through issuance of fully paid-up equity shares of ₹100 face value to L&T.
Upon completion, LTNSPL will become a direct wholly owned subsidiary of Vyoma and an indirect wholly owned subsidiary of L&T.
Vyoma set up for data centres
The transactions are expected to be completed by October 31.
Vyoma.AI Ltd is a newly incorporated public limited company established to set up data centres and provide infrastructure and technology-enabled services.