L&T makes an open offer to buy 31% stake in Mindtree for ₹5,030 cr.
Acquisition aligned with strategy to boost revenue, profit of asset-light services
Engineering and construction major Larsen and Toubro (L&T) on Tuesday made an open offer to acquire up to 5.13 crore equity shares of Mindtree, representing 31% of the voting share capital, for ₹980 a share or ₹5,030 crore.
The offer will open on May 14 and close on May 27, the company informed Mindtree shareholders.
As per the terms of the offer, L&T does not have any intention to dispose-off or otherwise encumber any assets or investments of Mindtree or any of its subsidiaries, through sale, lease, encumbrance, reconstruction, restructuring or otherwise, other than in the ordinary course of business.
“If the acquirer intends to alienate any material asset of the target company or any of its subsidiaries within a period of two years from the date of completion of the offer, a special resolution of the shareholders of the target company or any of its subsidiaries, as applicable, would be taken before undertaking any such alienation of any material asset,” said the offer document.
“The object and purpose of the acquisition of a controlling stake in the target company is aligned with the acquirer’s strategy to grow the revenue and profit of its asset-light services, business portfolio, thereby increasing the consolidated return on equity and further diversifying the consolidated group revenue and profits into the information technology and technology services areas,” L&T said.
Last week, L&T had agreed to buy 20.32% stake in Mindtree for ₹3,269 crore from Indian coffee baron V.G. Siddhartha. L&T had also placed an order with its broker for an on-market purchase of up to 15% of Mindtree’s shares at ₹980 a share.
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