Wednesday, May 7, 2008

HPL buys L&T stake in power joint venture

Haldia Petrochemicals (HPL) today announced that it has acquired Larsen & Toubro's 51per cent stake in HPL Cogeneration (HPLCL), the joint venture for captive power supply with HPL, for an estimated Rs 180 crore.

The buy-out came at a time when the company was operating in adverse circumstances with the bottomline under great pressure. The 10-year joint venture produced 116 mw for HPL's operations. According to the initial agreement, HPL could buy out L&T's stake in 2020 at a suitable price. However, both parties decided to go ahead with a buy-out now.

Read more in The Business Standard article.

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