Thursday, October 11, 2007

L&T Acquires Switchgear Company In Malaysia

Larsen & Toubro Ltd (L&T) has announced that the Company has entered into a share sale agreement with Malaysia-based Tamco Corporate Holdings Bhd towards the acquisition of the latters de-merged switchgear business, Tamco Switchgear Malaysia Sdn Bhd.

The two parties propose to enter into three other share sale agreements for acquisition of three of Tamcos switchgear manufacturing subsidiaries - Tamco Shanghai Switchgear Co Ltd in China, Tamco Electrical Industries Australia Pty Ltd in Australia and PT Tamco Indonesia in Indonesia.

The deal was signed on October 11, 2007 in Kuala Lumpur by Tamcos Chairman Mr. Dato Abdul Latif bin Abdullah and Deputy Chairman, Mr. Dato Siew Ka Wei and the Companys President - Operations & Member of the Board, Mr. R N Mukhija.

Speaking on the buyout, Mr. Mukhija said, This is a significant move forward in L&Ts plans of reinforcing its position as a major player in switchgear business. Tamco has a strong presence in the medium voltage (MV) category. With this acquisition, L&T will be able to offer a comprehensive range of MV switchgear in India and international market. This deal meets our requirements on both fronts of technology acquisition and market access. L&Ts process improvement initiatives will help achieve cost efficiency and contribute to synergy benefits.

Tamco is a major player in MV Switchgear in Malaysia. The Middle East and Malaysia, together contribute to over 50% of its revenue.

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