L&T may spend about $1 billion in Mindtree buyout: ex-CEO Subroto Bagchi resigns from govt post ‘to save company’

Construction firm Larsen & Toubro Ltd would spend up to Rs 7,000 crore ($1.02 billion) in a hostile bid to buy IT services company Mindtree Ltd, a media report said citing sources directly involved with the matter. L&T will buyout Mindtree’s largest shareholder VG Siddhartha and companies in which he is a promoter, following which an open offer will be sent to the public shareholders of Mindtree, according to The Times of India report published on Monday.

The AM Naik-helmed L&T is buying Siddhartha’s nearly 21 per cent stake for over Rs 3000 crore, at Rs 981 rupees a share, which will make it Mindtree’s largest shareholder. Following this, L&T 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 Mindtree as of December-end, BSE data showed. Coffee Day Enterprises and Coffee Day Trading carry a combined 17.08 per cent stake in Mindtree.

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