Canada Pension Plan to invest in India Larsen & Toubro unit

Jun 23 2014, 11:40 IST
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The Canadian fund is investing in preference shares of L&T IDPL. (Reuters) The Canadian fund is investing in preference shares of L&T IDPL. (Reuters)
SummaryCanadian pension fund will invest in L&T Infrastructure Development Projects...

Larsen & Toubro (L&T), India's biggest engineering and construction company, said on Monday a unit of Canada Pension Plan Investment Board had agreed to invest an initial 10 billion rupees ($168 million) in its infrastructure development arm.

The Canadian pension fund will invest a further 10 billion rupees, or a higher amount, in L&T Infrastructure Development Projects Ltd (L&T IDPL) after 12 months of the first investment, L&T said in a statement.

The Canadian fund is investing in preference shares of L&T IDPL that are compulsorily convertible into equity shares by 2018 at a valuation agreed by both sides, said L&T, adding the fund would own a minority stake in L&T IDPL after the conversion.

($1 = 59.7000 Indian Rupees)

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