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L&T makes Rs 10,733 crore bid to buy majority stake in Mindtree

Calling this a strategic fit, S N Subrahmanyan, CEO & Managing Director said, "This acquisition is part of our strategy to deliver industry-leading IT services to our clients worldwide."

Rukmini Rao        Last Updated: March 19, 2019  | 00:22 IST
L&T makes Rs 10,733 crore bid to buy majority stake in Mindtree

Drawing curtains on months of speculation, Larsen & Toubro is all set to shell out Rs 10,733 crore to buy 66.32% in mid-tier IT company Mindtree in an all-cash deal. L&T announced it has signed a Share Purchase Agreement (SPA) with V G Siddhartha to acquire 20.32% in Mindtree held by him and other Coffee Day Group companies. The company would be purchasing 3,33,60,229 shares held by Siddhartha at a price of Rs 980 apiece and has also additionally placed a market purchase order with its stockbroker for acquiring upto 2,48,34,858 equity shares at the same rate, equivalent to 15 per cent holding in Mindtree.

Additionally, the company as per SEBI Takeover Regulations (as required under Regulation 3(1) and 4), has also announced an open offer to acquire 31 per cent additional stake at Rs 980 per share. However, L&T has affirmed that Mindtree will remain as a separately listed entity. Calling this a strategic fit, S N Subrahmanyan, CEO & Managing Director said in the statement  "This acquisition is part of our strategy to deliver industry-leading IT services to our clients worldwide. It will help propel L&T's technology portfolio into top tier of Indian IT companies". For L&T the objective of acquisition seems to be to grow the revenue and profit of their asset light services business portfolio and diversify the consolidated group revenue and profits into the information technology and technology services sector.

Also Read: 'I must protect the tree': Subroto Bagchi returns to Mindtree amid L&T's hostile takeover threat

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