L&T, Datar Switchgear sign MoU

Larsen & Toubro Ltd (L&T), Nashik, has entered into a Memorandum of Understanding (MoU) with Datar Switchgear Ltd (DSL), Nashik, to merge DSL with the company, under a scheme to be approved by the Board of Industrial and Financial Reconstruction (BIFR).

DSL manufactures electrical and electronic products. Before the merger, DSL will transfer its electronics business and other identified liabilities to an identified company.

As part of the arrangement, the company will takeover debt of approximately Rs 24 crore.

The company's equity share capital will not undergo any significant dilution post merger.

The acquisition is in line with the company's plans, to expand the product range in the low voltage electrical business. After obtaining the approval of DSL's lenders, the scheme will be filed with BIFR for approval.

It will also be placed before the shareholders of the company, when directed by BIFR.