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Last Updated : Jun 12, 2019 12:58 PM IST | Source: Moneycontrol.com

Mindtree independent directors find L&T’s open offer ‘fair and reasonable’

L&T’s open offer for Mindtree starts on June 17 and ends on June 28

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The committee of independent directors (IDC) set by Mindtree has deemed the open offer by L&T to acquire Mindtree shares as “fair and reasonable”.

In its recommendations, published in newspapers on June 12, the committee has said the offer price of Rs 980 by the engineering major L&T is in accordance with regulations under Security and Exchanges Board of India (Substantial Acquisition of Shares and Takeovers).

The recommendation also adds that, considering the market prices for equity shares on June 10 in BSE and NSE were at Rs 974 and Rs 975 respectively, the offer price of Rs 980 is fair and reasonable.

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“The Shareholders of the target company (Mindtree) are advised to independently evaluate and take an informed decision about tendering equity shares held by them in the open offer,” the recommendation added.

L&T’s open offer for Mindtree starts on June 17 and ends on June 28. The initial open was slated to start on May 14 but was postponed due to a delay in approval by SEBI.

The engineering behemoth said in March that it intended to increase its stake in Mindtree to 66.32 percent through open offer for 31 percent and 15 percent on market purchase.

As on June 6, the company had 28.9 percent stake in Mindtree through the purchase of 20.32 percent share from VG Siddhartha in March and his coffee enterprise, and the rest from open market purchase from May through June.

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First Published on Jun 12, 2019 09:57 am
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