Mindtree board on Tuesday decided not to pursue the buyback offer, which the company had announced last week before Larsen and Toubro struck a deal to become the largest shareholder in the company, by buying 20.32 per cent of shares held by VG Siddhartha and his companies. The company also announced the setting up of a committee of independent directors to evaluate the offer.
"After detailed deliberation and discussion, the board in its meeting today, decided to immediately constitute the Committee of Independent Directors (IDC) in the interest of all stakeholders to provide their reasoned recommendation in respect of the unsolicited offer by L&T for the consideration of the shareholders," said the release on BSE, following the board meeting.
While all the independent directors of the company will be members, the committee will be headed by the lead independent director Apurva Purohit. The committee will be take in consideration all aspects of the 'unsolicited offer', by looking into all the relevant facts, circumstances, data related and provide an informed view, keeping in mind the interest of all stakeholders in the company.
"This committee will discharge the legal obligations placed on the independent directors under the prevailing regulations with respect to providing reasoned recommendations on the unsolicited offer by L&T," said the release.
The committee will also seek the help of independent legal and financial advisors while forming its opinion. Currently, the company has four independent directors--Milind Sarwate, Apurva Purohit, Akshaya Bhargava and Bijou Kurien on its board.
Meanwhile, Larsen and Toubro also made a public announcement for the acquisition of shares from the market with Axis capital and Citi Global managing the open offer. L&T has made an offer to acquire up to 5,13,25,371 representing 31 per cent of voting right in Mindtree. L&T is offering Rs 980 per share.