Rolta sells 50 pc JV stake to Shaw for Rs 160 cr

MUMBAI: Rolta today announced that it has sold its 50 per cent share in Shaw Rolta Limited (SWRL) to its joint venture partner, Stone & Webster, Inc - a subsidiary of The Shaw Group, Inc.

The transaction is effective from December 31, 2010. "Rolta has been able to unlock substantial value in SWRL to its best advantage. For its 50 per cent shares that have a face value of approximately $ 100,000 (Rs 50 lakh), the sale agreement provides for an immediate receipt by Rolta of a sum of $ 27.5 Million (about Rs 125 crore), and in addition, about $ 8.0 million (Rs 36 crore) over the next two years, for defined services, aggregating to about $ 35.5 million (nearly Rs 160 crore) as total consideration per the agreement, a company statement said here.

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

"This is a win-win situation for both partners. After a very satisfactory performance by the JV, this transaction enables both Rolta and Shaw to pursue their business strategies independently and still provides Rolta the right to leverage The Shaw Group's expertise and track record in nuclear power over the next five years, as and when Shaw desires to serve the Indian nuclear energy market," Rolta's Chairman & Managing Director, K.K. Singh said.