L&T trying to take over Mindtree, takes first step by buying share worth ₹113 Crores in open market - Next Big Brand
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L&T trying to take over Mindtree, takes first step by buying share worth ₹113 Crores in open market

L&T
Sourav
Written by Sourav

The Indian multinational conglomerate Larsen & Toubro (L&T) are trying to take over another big fish in the pond, Bengaluru-based IT and outsourcing giant Mindtree. The first step in their big plan is buying shares worth ₹113 Crores in the open market. According to the data available from NSE, L&T bought 11.59 Lakh shares or, in other words, 0.75% of the company’s shares.

This comes after the transaction they had with one of the major stakeholders in the company, V. G. Siddhartha, owner of beverage chain Café Coffee Day, not a long time ago. There they bought 20.32% share for a whopping ₹ 3,100 Crores. As of now L&T have more than 21% shares in Mindtree. However, it is not going to stop anytime soon and the company is looking forward to taking over the company as soon as possible. To achieve that, it has already lined up an order with brokers for shares worth 15% more through open markets, worth ₹ 2,500 Crores.

mindtree

Image Source- Moneycontrol

Not stopping there, L&T is coming up with an open offer to buy an additional stake of 31% of the company. This fast phase of acquiring the company can come out as hostile and that is exactly what the board of directors at Mindtree are feeling. They are feeling the heat and have had meetings to discuss the same. The directors are not happy with the situation, as they see L&T as a company that does not match Mindtree’s work ethics and traditions. However, if L&T manages to get all the stakes they are planning to get then the directors would not have much of say in the company.

In addition to the 21.07% stake L&T already has, if they get the 46% stake they are hoping to get soon, it will stakeholders of a whopping 67.07%, making them owners of two-third of the company. L&T, the giants in the field of construction, not just in India but also in world, is on its way to expand its wings in other fields as well. With L&T already entering the IT market with L&T Infotech, it now sees huge potential in MIndtree and hence are coming up with such huge offers. While L&T Infotech focusses on banking, Mindtee would help them focus on retail and hospitality. L&T sees this as part of their big expansion plan.

About the author

Sourav

Sourav

Excellent story-teller, with a background in SEO and Digital Marketing.
Likes to write and give form to opinion and incidents.

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