Mahindra to buy BT stake in Tech Mahindra
PTI November 26, 2010Auto giant Mahindra & Mahindra (M&M) on Friday said it has agreed to acquire 5.5 per cent of information technology firm Tech Mahindra's stake from UK-based British Telecommunications Plc (BT).
UK's largest fixed-line phone company, BT, holds 30 per cent stake in Tech Mahindra.
"Pursuant to a proposal received from BT, the company has agreed to acquire 5.5 per cent of the equity shares of Tech Mahindra over time through an inter-se transfer among qualifying promoters at a market related price, in accordance with the SEBI regulations," M&M said in a filing to the Bombay Stock Exchange.
Financial details of the deal were not disclosed.
M&M will also waiver rights to buy BT's remaining stake in the software services provider, and the agreement will automatically terminate if BT's stake in Tech Mahindra falls below 10 per cent, the filing said.
The company has also agreed to consider further proposals from BT in this regard, it added.