38.6c New Delhi, India, Friday, March 29, 2024
Business

L&T Acquires Majority Stake Of 51.8% In Mindtree In First Hostile Takeover In Indian IT Industry

By LawStreet News Network      28 June, 2019 12:00 AM      0 Comments
L&T Acquires Majority Stake Of 51.8% In Mindtree In First Hostile Takeover In Indian IT Industry

Engineering and construction major Larsen and Toubro has reportedly acquired majority control over Mindtree, by gaining 51.8% of shares in the Bengaluru-based IT company. This could be termed as India’s first major hostile takeover.

L&T’s open offer for Mindtree was launched on June 17, 2019, and is set to close today i.e., June 28, 2019. On June 25, 2019, Mindtree's share had reached 48% after Singapore based Nalanda Capital offloaded its entire 10.6% stake in Mindtree. Amansa Capital too, which held 2.77% stake in Mindtree sold its stake through the open offer.

Under the open offer, 73.9% of public shareholders sold their shares to L&T at Rs 980 a share. According to a Mint report, National Stock Exchange (NSE) data showed that 3,79,65,103 shares had been tendered as of 12.30pm on June 26, 2019. L&T had made an open offer to buy shares of Mindtree at Rs 980 a share.

As per reports, Mindtree’s board agreed last week to appoint L&T CEO S.N. Subrahmanyan, CFO R.S. Raman, and senior VP of L&T’s defence business Jayant Damodar Patil to the company’s board.

The process of acquiring Mindtree was started in March when L&T bought 20.32% stake in the company from V.G. Siddhartha, founder of Café Coffee Day and two of his companies.

Subsequently, in next two months, it bought 8.58% stake from other shareholders, which further increased its ownership to 28.9%, after which the open offer started.

In March, Mindtree’s co-founders Subroto Bagchi, Rostow Ravanan, and Krishnakumar Natarajan strongly opposed the hostile takeover, saying that it made no strategic sense. Together, they own 13.32% in the company.

As the E&C major has gained majority control of the company, CNBC-TV18 reports that Mindtree founders have decided to sell their stake and exit the company.

According to the report, some founders may sell their stake in the open offer, while some may stay on for some time and sell their stake over a period of time.

According to Mint report, L&T can buy another 15% of shares as it plans to spend Rs 10,800 crore to own 66% in Mindtree.



Share this article:

User Avatar
About:


Leave a feedback about this
TRENDING NEWS

arvind-kejriwals-plea-for-interim-release-rejected-by-delhi-high-court
Trending Judiciary
Arvind Kejriwal's plea for interim release rejected by Delhi High Court [Read Order]

Delhi High Court rejects Arvind Kejriwal's plea for interim release in money laundering case related to liquor policy scam, pending ED's response.

28 March, 2024 10:50 AM
youtuber-strings-plea-against-youtube-accounts-suspension-andhra-pradesh-hc-issues-notice-to-centre-google
Trending Top Stories
BREAKING: Youtuber String’s plea against Youtube accounts suspension: Andhra Pradesh HC issues notice to Centre, Google

Andhra Pradesh High Court issues notice to the Centre and Google LLC on Youtube journalist String’s plea against suspension of its accounts by Google (which owns Youtube).

28 March, 2024 11:26 AM

TOP STORIES

delhi-liquor-scam-court-remands-arvind-kejriwal-to-ed-custody-till-march-28-read-remand-application
Trending Judiciary
Delhi liquor scam: Court remands Arvind Kejriwal to ED custody till March 28 [Read Order]

Delhi liquor scam: Arvind Kejriwal remanded to ED custody till March 28. Court grants agency permission for interrogation in liquor policy case.

23 March, 2024 11:53 AM
sc-dismisses-centres-plea-for-review-of-judgment-directing-ed-to-furnish-written-grounds-of-arrest-to-pmla-accused
Trending Judiciary
SC dismisses Centre’s plea for review of judgment directing ED to furnish written grounds of arrest to PMLA accused [Read Order]

Supreme Court dismisses Centre's plea, upholds judgment mandating Enforcement Directorate to provide written grounds of arrest in PMLA cases.

23 March, 2024 03:14 PM
kerala-hc-to-hear-lesbian-couples-plea-against-forced-conversion-therapy-on-april-9
Trending Judiciary
Kerala HC to hear lesbian couple’s plea against forced conversion therapy on April 9

Kerala HC will hear a lesbian couple’s plea highlighting that one of them was subjected to forced conversion therapy.

23 March, 2024 03:30 PM
how-can-people-be-compelled-to-vote-madras-hc-asks
Trending Judiciary
“How can people be compelled to vote? Madras HC asks

“How can people be compelled to vote?”, the Madras HC queried in a plea asking employers in Tamil Nadu to demand proof from employees of having voted on polling day.

23 March, 2024 05:04 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email