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L&T may spend over $1 billion in a bid to buy Mindtree: Report

L&T will buy out Mindtree's largest shareholder VG Siddhartha and companies in which he is a promoter

Reuters 

Mindtree
Mindtree | Photo: Wikipedia

Indian conglomerate Ltd would spend up to Rs 70 billion ($1.02 billion) in a hostile bid to buy IT services company Ltd, the Times of India (TOI) reported citing sources directly involved with the matter.

will buy out Mindtree's largest shareholder VG Siddhartha and in which he is a promoter, following which an open offer will be sent to the public shareholders of Mindtree, according to the report published on Monday.

The A M Naik-helmed is buying Siddhartha's nearly 21 per cent stake for over Rs 30 billion, at 981 rupees a share, which will make it Mindtree's largest shareholder. Following this, will trigger an open offer for another 26 per cent from public shareholders, the report said.

Siddhartha, who is a promoter of Coffee Day Enterprises Ltd and Coffee Day Trading Ltd, holds a 3.33 per cent stake in as of December-end, BSE data showed. Coffee Day Enterprises and Coffee Day Trading carry a combined 17.08 per cent stake in

Mindtree was not immediately available for a comment while L&T said they did not comment on market speculations.

L&T was down 0.7 per cent, while Mindtree rose 1.2 per cent as of 0606 GMT.

First Published: Mon, March 18 2019. 11:59 IST
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