- 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.
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.