Leighton, the Australian arm of the world's fourth biggest building firm ACS, is buying out the 40% stake of its Indian partner in the company. A person with direct knowledge of the situation said the $100-million deal is part of Leighton's strategy to consolidate its Asian operations, wrote Times of India.
The transaction refocuses Welspun's interest in the infrastructure business, particularly on road assets and projects, the report stated.
Leighton, Welspun's foreign partner, wants to have complete hold over its Indian arm. The Australian firm currently owns 60% of Leighton Welspun Contractors (LWC), one of India's top 10 construction companies, the report explained.
Welspun intends to use the proceeds of the stake sale to deleverage the company's balance sheet. At present, the firm posts a debt of INR2,600 crore, the cited source said. With the group leaving the construction venture, its infrastructure roles will be restricted to Welspun Projects, which it purchased in 2010, Times of India reported.
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