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L&T Completes Acquiring Controlling Stake In Mindtree

Olga Robert

On Wednesday, Larsen & Toubro (L&T) completed acquiring a majority stake in Bengaluru-based Mindtree in India's first IT sector hostile takeover.

On Tuesday, Economic Times reported that in the engineering and construction major's ongoing open market offer, it had reached 48 percent after Singapore-based public market fund Nalanda Capital offloaded its entire 10.6 percent stake in Mindtree. On Wednesday it said that L&T bought Arohi Asset Management's 1.22 percent stake, held in the company via Ontario Teachers' Pension Plan.

L&T's open offer for Mindtree shares opened on 17 June and ends on 28 June, allowing shareholders to sell their shares at Rs 980 apiece.

It has been looking to take over the Bengaluru-based IT firm by increasing its shareholding by up to 66 percent.

According to its plan and in compliance with SEBI norms, it has acquired 29 percent of the IT firm, of which it purchased 20.32 percent that was jointly held by Cafe Coffee Day's founder V.G. Siddhartha and two of CCD's associate firms. The rest was added from its purchases made in the open market.

Last week, Mindtree's board agreed to add three of L&T's executives, including chief executive S.N. Subrahmanyan, chief financial officer R.S. Raman, and senior executive vice-president of L&T's defence business Jayant Damodar Patil to its board. Separately, Mindtree also agreed to L&T's proposal of inducting two independent directors, former L&T executive Prasanna Rangacharya Mysore and former bureaucrat Deepa Gopalan Wadhwa.

Shares of L&T Ltd climbed nearly 2 percent while those of Mindtree slipped by over 1 percent in Wednesday's trade session.

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