L&T is considering moving as much as 100 billion rupees ($1.83 billion) of debt to the merged entity, according to the person. It may eventually seek a separate listing for the power business after the deal, the person said.
Deliberations are ongoing, and details of the potential transaction could change or talks could fall apart, the people said.
A representative for L&T didn’t immediately respond to requests for comment, while a representative for Sembcorp couldn’t immediately comment.
Shares in Sembcorp Industries extended gains to as much as 2.7% following the Bloomberg News report, while L&T pared losses and was down 0.5% as of 13:38 p.m. local time.
Photo: Sembcorp's second 1,320 MW supercritical coal-fired power plant, Sembcorp Gayatri Power (formerly NCC Power Projects) / Credit: Sembcorp Indistries
