This is what Larsen and Toubro set to get at Mindtree: Points in brief
The row between construction major Larsen and Toubro (L&T) and IT major Mindtree is no longer hitting the headlines on a daily basis, but there is hectic activity on behind the scenes.
The row between construction major Larsen and Toubro (L&T) and IT major Mindtree is no longer hitting the headlines on a daily basis, but there is hectic activity on behind the scenes. This is because of the hostile takeover bid of the Bengaluru-based tech firm Mindtree Ltd - this was the first-ever hostile takeover bid in the Indian IT space. It has now been revealed L&T has secured three board positions at the IT services firm. According to PTI, this has given L&T a firm control over the company.
What happened and what is in offing? Blow by blow account
1. Larsen and Toubro, in March, said it will buy 20.32 per cent stake in Mindtree
2. This stake buy was from VG Siddhartha and his coffee enterprise and was as high as over Rs 3,000 crore.
3. L&T has steadily increased its holding in Mindtree to about 30 per cent.
4. L&T is currently in the process of an open offer to buy an additional 31 per cent stake.
5. Open offer price is Rs 980 per share
6. Open offer opened on June 17 and is slated to close on June 28.
7. If the offer is subscribed fully, Larsen and Toubro will have a 66.32 per cent holding in Mindtree.
What is L&T set to get?
Board positions, that is what. In fact it will get 3 board positions. IT firm Mindtree Thursday said L&T CEO and MD SN Subrahmanyan will join its Board as Non-Executive Director with effect from July 16.
The Nomination and Remuneration Committee and the Board of Directors of Mindtree have also approved and recommended the appointments of Jayant Damodar Patil and Ramamurthi Shankar Raman as non-executive directors, subject to shareholders' approval at Mindtree's Annual General Meeting on July 16, a BSE filing said.
Patil is a whole-time director and Senior Executive Vice-President for L&T's Defence business, while Raman presently oversees the finance functions across the L&T Group, it added.