L&T-GreatOffshore-Blackstone for ICICIVenture's Tebma Shipyard

According to a ToI article, L&T, shipping company Great Offshore and private equity funds Blackstone, Abraaj Capital and Apax Partners are eyeing a stake in the south-based Tebma Shipyards.

Tebma Shipyards is India’s third largest private ship-building firm after ABG and Bharati Shipyard. Owned largely by ICICI Venture, Tebma, as part of expansion strategy, plans to build a facility in West Bengal.

The 150 acres Rs 500 crore project ($125 million) will be funded by Debt & . ICICI Venture has been approached by various players.Ship-building players earn operating margins of 20-25% helped by 30% export subsidy

The West Bengal shipyard will be Tebma’s third facility, in addition to its Chengalpattu (70km from Chennai) and Malpe in Karnataka. The company will issue fresh equity to the investor and accordingly, ICICI Venture’s stake in Tebma Shipyards will come down, market sources said. The new shareholder is likely to get upto 26% stake for $100 million in Tebma Shipyards. The Rs 400 crore Tebma has an order book position of $400 million.

Similar to publishing firm Infomedia and heat resistant cement products maker ACE Refractories, Tebma too has been a buyout deal by ICICI Venture. Last year, the private equity arm of ICICI Bank bought a 33% stake in Tebma Shipyards and increased its holding to 53% by acquiring additional shares through open offer. Several small investors hold the remaining shares in the company.

The second largest shareholder is Balan, founder of Tebma, who holds about 9% stake.

L&T merges Datar Switchgears with itself

Larsen & Toubro Limited (L&T) has reportedly merged the Nashik-based Datar Switchgear with itself for an undisclosed amount. L&T has also absorbed 160 workers of Datar Switchgears in its Ahmednagar facility. The remaining legal formalities in this regard are expected to be completed within the next one or two months. The distressed Datar Switchgear, spread over four acres in Ambad in Maharashtra Industrial Development Corporation (MIDC) facility, was engaged in the manufacture of electrical and electronic products.

The company was a pioneer in the production of circuit breakers. The move is aimed at extending its presence in the low voltage electrical business. The Board of Industrial & Financial Restructuring (BIFR) has also reportedly given its clearance for the merger of Datar Switchgears with L&T. L&T has already shifted all the technology and machinery of Nashik-based Datar Switchgears to its Ahmednagar facility in Maharashtra.

Datar Switchgears, established in 1984 in Nashik, had indigenously developed the technology for the manufacture of earth leakage circuit breakers (ELCB) and minutes circuit breakers (MCB). Datar Switchgears was also involved in manufacturing switchgears, ultrasonic welding machines and of capacitor panels, for rental and outright sales. But the company had financially come into distress with the collapse of company’s cash flow and affecting payments of interest and principle to financial institutions, banks and other financiers, and also a loss of substantial business opportunities.

Read the Business Standard article.

L&T, EADS form JV to tap aerospace & defence markets

Larsen & Toubro (L&T) and European aerospace and defence group EADS have formed a JV for joint exploration of business opportunities in defence and aerospace.L&T and EADS have signed a Memorandum of Understanding (MoU) to establish a “long-term, profitable and stable relationship” to better address the needs of the aerospace and defence markets in India and around the world. The signing took place at the Aero India 2007 exhibition in Bangalore.

Read the Business Standard article.

L&T forms JV with Saudi company

Engineering and construction major Larsen & Toubro (L&T) Limited has entered into a joint venture (JV) with AA Turki Contracting & Trading Corporation (ATCO), a leading conglomerate in Saudi Arabia, for construction in the hydrocarbon and power sectors. The new venture would be known as Larsen & Toubro ATCO (Saudia) LLC, and would be registered as a local company in Saudi Arabia. Financial details were not disclosed.

Read more in The Economic Times.