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Last Updated : Jun 17, 2019 06:24 PM IST | Source: Moneycontrol.com

L&T open offer for Mindtree shares commences on June 17

With the additional 31 percent stake at the investment of Rs 5000 crore for the open offer, the engineering behemoth is looking to up its stake in the IT firm to 66.32 percent.

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Image: Facebook/mindtreeltd
Image: Facebook/mindtreeltd
 
 
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Engineering major L&T‘s open offer to buy 31 percent of Mindtree shares at Rs 980 per share opened on June 17, 2019.

The open offer will end on June 28, 2019. With the additional 31 percent stake at the investment of Rs 5,000 crore for the open offer, the engineering behemoth is looking to up its stake in the IT firm to 66.32 percent.

In India’s first-ever hostile takeover bid in the IT space, L&T signed a definitive agreement to acquire 20.32 percent from VG Siddhartha and his coffee enterprise for over Rs 3,000 crore on March 18. The deal was formalised late April.

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In March, L&T said it would increase its stake to 66.32 percent through an open offer for 31 percent and an open market purchase of 15 percent. This puts the total value of the acquisition at Rs 10,700 crore or Rs 980 per share. On June 6, the company upped its stake in Mindtree to 28.90 percent.

The move was against what Mindtree founders wanted since they did not want to be a part of a large conglomerate. The weeks leading up to the buyout of Siddhartha’s majority stake by L&T saw the founders of Mindtree taking all necessary steps of fend off a hostile takeover bid. This included the buyback of shares or looking for another white knight. The company's move failed at both ends.
First Published on Jun 17, 2019 06:24 pm
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