Companies

Rolta sells stake in Shaw Rolta to JV partner 

Rolta on Wednesday announced that it had sold its 50 per cent stake in Shaw Rolta Ltd. (SWRL) to its joint venture partner Stone & Webster, a subsidiary of the Shaw Group, Inc.

The effective date of this transaction is December 31, 2010.

According to a statement, through this transaction, Rolta has been able to unlock substantial value in SWRL and for its 50 per cent share that have a face value of about $100,000 (Rs.50 lakh), the sale agreement provides for an immediate receipt by Rolta of a sum of $27.50 million (about Rs.125 crore), and in addition, about $8 million (Rs.36 crore) in the next two years, for defined services, aggregating to about $35.50 million (nearly Rs.160 crore) as total consideration as per the agreement.

SWRL paid a dividend of Rs.1 crore each to Rolta and Shaw for the last financial year ended on June 30, 2010.

Established in 2004 as a 50:50 joint venture, SWRL has served as an off-shore engineering centre for Shaw's global projects, and focused on EPC business in India, including nuclear energy sector.

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Printable version | May 17, 2021 2:34:18 AM | https://www.thehindu.com/business/companies/Rolta-sells-stake-in-Shaw-Rolta-to-JV-partner/article15524721.ece

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