L&T Finally Acquires Controlling Stake In Mindtree

L&T purchased a fifth of Mindtree from coffee baron V.G. Siddhartha in March.
The building giant based in Mumbai increased its stake in Mindtree to 51 percent
Earlier, Nalanda Capital sold its entire 10.61 percent stake in the offer to L&T

Indian conglomerate Larsen and Toubro Ltd (L&T) have acquired a controlling stake in the IT services company Mindtree Ltd, reported by CNBC TV18 channel citing sources.

The report comes within months of Mind Tree rejecting L&T’s hostile takeover offer, stating the scheme had no significance for the company or its shareholders. L&T’s hostile bid to acquire a controlling stake in Mind tree is the first in India’s software services industry and is rare in India’s corporate sector, where unwanted suitors are usually dissuaded by large-shareholder founders.

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L&T purchased a fifth of Mind tree from coffee baron V.G. Siddhartha in March. For 32.69 billion rupees ($474.73 million), Siddhartha and associated businesses said they intended to increase their stake to 66 percent. Mindtree founders with the Executive Chairman Krishnakumar Natarajan and Chief Executive Rostow Ravanan, owned a 13.3% stake in the company as of March 2019.

L&T has continued to purchase its stake from its promoters since March and through a continuing open offer. Earlier this week, Nalanda Capital, based in Singapore, sold its entire 10.61 percent stake in the offer to L&T in the IT services company.

Mind Tree was not accessible for comment instantly, while L&T refused to comment on the issue. The building giant based in Mumbai increased its stake in Mindtree to 51 percent.