Cananda Pension Plan Invesment Board to invest in L&T Infrastructure Development Projects
Larsen & Toubro announced that the Company has entered into definitive investment agreement with the wholly owned subsidiary of Canada Pension Plan Investment Board (CPPIB), CPP Investment Board Singapore Holdings 1 (CPPIBSH), for an initial investment tranche of Rs 1000 crore, to be invested by CPPUBSH into the Company's subsidiary L&T Infrastructure Development Projects (L&T IDPL).This will be followed by the second tranche of Rs 1000 crore, or such high amount as may be agreed between the Company and CPPIBSH, after twelve months from the date of the initial investment subject to required regulatory approvals at such time.
CPPIBSH will invest in preference shares of L&T IDPL, compulsorily convertible into equity shares by 2018 at a valuation to be determined as per mutually agreed process. Post conversion, CPPIBSH will hold a minority stake in the equity capital of L&T IDPL.
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