L&T tightens grip on Mindtree with 51% stake

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Larsen and Toubro (L&T) has increased its stake to 51% in IT services firm Mindtree.

The engineering conglomerate bought Arohi Asset Management’s 1.22% stake, held in the company via Ontario Teachers’ Pension Plan, through its ongoing open offer.

ET on Tuesday reported that L&T’s stake in Mindtree had reached 48% after Singapore-based public market fund Nalanda Capital offloaded its entire 10.6% stake in the Bengaluru-based software services company.

L&T has also bought Mindtree shares from Nemish Shah’s Enam Holdings, White Oak, Avendus Capital, HDFC Life Insurance, and mutual funds and foreign institutional investors (FIIs).

L&T made a takeover bid for the company in March after it entered into a deal to buy Cafe Coffee Day owner VG Siddhartha’s 20.32% in Mindtree.

It made an open offer starting June 17 at Rs 980 apiece to buy 51.3 million shares, or a 31% stake in the company, over and above the 28% it picked up from Siddhartha and through open market purchases. The offer is on till June 28. L&T aims to own 66% in the tech services exporter.

Last week, the company’s board approved three seats for L&T senior leaders — chief executive and managing director S N Subrahmanyan, senior executive vice president for L&T’s defence business J D Patil and chief financial officer Ramamurthi Shankar Raman – effective July 16.

Mindtree crossed the $1 billion revenue mark last fiscal, two decades since inception. The company is targeting slightly below 13% growth for FY20.

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