Infrastructure major Larsen & Toubro (L&T) said it will acquire 21% stake in E2E Networks Ltd, a cloud services company, for Rs 14.07 billion. The move assumes significance as it will increase L&T's reach in cloud and AI services -- the key growth areas in the technology sector.
"The company has entered into an investment agreement on November 5, 2024 for the acquisition of up to 21 % stake in E2E Networks Ltd," L&T said in a regulatory filing. L&T will make an investment of Rs 10.79 billion for a 15 % stake via preferential allotment and Rs 3.27 billion for an additional six % stake through secondary acquisition, the filing said.
The acquisition of stake in E2E Networks is likely to be completed by December 31. L&T will not acquire control in E2E Networks and will be a minority shareholder with certain protective rights.
