The board of directors of Larsen & Toubro Ltd. (L&T) on Wednesday approved a proposal to transfer all assets and liabilities of its hydrocarbon business into a wholly-owned subsidiary, L&T Hydrocarbon Engineering Ltd. (LTHE), as this business offers promising growth potential in the international market.

The businesses would be transferred at book value from L&T for a total consideration of Rs.1,760 crore to be paid by LTHE in cash.

This company will bid for projects in Oman, Saudi Arabia and Malaysia where it has large presence.

The appointed date of the scheme would be April 1, 2013. There would be no issue of shares by LTHE to the shareholders of L&T pursuant to the transfer of hydrocarbon business.

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