Larsen & Toubro Infotech Limited (LTI) stated on Friday that Sanjay Jalona has resigned from the position of Chief Executive Officer and Managing Director of the firm due to personal reasons. LTI said this after announcing its merger with IT services company Mindtree.
"The Board of Directors of the Company have at their meeting held today, noted and accepted the resignation of Mr. Sanjay Jalona. His last working day will be decided mutually," wrote LTI in a stock exchange filing.
Earlier on Friday, LTI had announced amalgamation and arrangement with IT services company Mindtree "to create an efficient and scaled-up IT services provider exceeding $3.5 billion."
Given that recent industry shifts (e.g., prominence of large deals, preference for end-to-end offerings) are benefitting at-scale players, LTI and Mindtree have decided that the time is appropriate to combine the strengths of both organisations to better serve the customers, LTI noted in a statement.
The transaction is subject to shareholder and regulatory approvals.
Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree. The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Limited will hold 68.73 per cent of LTI after the merger, the statement added.
For now, the companies will continue to function independently. A Steering Committee will be constituted to oversee the transition till the merger process is complete.
The name of the combined entity will be "LTIMindtree".
Shares of LTI on Friday closed 3.64 per cent lower at Rs 4,593.10 apiece while shares of Mindtree closed 3.88 per cent lower at Rs 3,374.65 apiece on BSE.
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