Temasek sees 10 times gain with 5.5 billion euro stake sale in Indian JV with Schneider
The transaction is the 'logical next step' in Schneider's investment focus on India, and full ownership of the JV 'will support speed of decision-making for India as a hub', the company said in a press release on Wednesday (Jul 30).
Temasek had bought the 35 per cent stake in the joint venture, called Schneider Electric India, for 530 million euros in 2020, according to Schneider's financial report that year.
The JV was created from the combination of Schneider's low voltage and industrial automation products business in India with the electrical and automation unit of Larsen & Toubro.
The divestment comes after a Jul 16 Bloomberg report on the potential deal, where Schneider was then said to be in talks to buy Temasek's stake for about US$1 billion.
Schneider, whose origins trace back to 1836, specialises in energy management and industrial automation solutions.
Temasek has recently indicated that it is looking to back more family-run businesses in India, following its US$1 billion investment into snacks maker Haldiram.
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