L&T to buy 31% Mindtree shares at 5,030 crore

L&T to buy 31% Mindtree shares at 5,030 crore
Highlights

The offer at 980 per share opens on May 14 and closes on May 27. Axis Capital, Citigroup Global Mkts India are the managers for the issue

Bengaluru: Infrastructure behemoth Larson & Toubro (L&T) Ltd on Tuesday offered to buy over 5.13 crore shares or 31 per cent of IT major Mindtree's equity stake for Rs 5,030 crore at Rs 980 per share of Rs 10 face value.

"L&T has made an open offer to acquire 5,13,25,371 equity shares of Rs 10 face value, representing 31 per cent of the voting share capital from shareholders of Mindtree with an intention to take control of the target company," said the city-based Mindtree in a regulatory filing on the BSE.

The offer opens on May 14 and closes on May 27. Axis Capital Ltd and Citigroup Global Markets India are the managers for the issue.

The two decades old IT consulting firm has informed L&T on March 22 that the outstanding units under the employee restricted stock purchase plan (Esop) 2012 were 3,69,650 as on March 15.

"We understand that 13,51,673 convertible instruments of Mindtree, including the Esop units are capable of being allotted during the offer and for determining the voting share capital in the open offer," noted the filing.

The offer price (Rs 5,030 crore) will be paid in cash in accordance with the guidelines of the regulator Securities Exchange Board of India (SEBI).

"If the aggregate responses to the offer are more than the offer size, then the offers from the shareholders will be accepted on a proportionate basis, in consultation with the issue managers," added the filing.

"The acquisition is expected to be value accreting for our shareholders as well as of Mindtree in the medium and long-term," L&T said in a statement from Mumbai later.

Show Full Article
Download The Hans India Android App or iOS App for the Latest update on your phone.
More Stories


Top