Construction giant L&T to launch open offer for Mindtree at Rs 980 a share

L&T, which has made a hostile takeover bid on Mindtree, said its open offer for the company will open on May 14th at a price of Rs 980 a share. The large shareholders of Mindtree, however, are expecting the construction giant to sweeten its offer at the time of open offer, say bankers. L&T will spend around Rs 5,030 crore in the open offer. The offer will close on May 27th.

Mindtree shares were trading on Tuesday at Rs 944 a share – far below the open offer price. In a public announcement, L&T said its offer is value accretive to the shareholders of Mindtree. L&T made the “hostile” takeover on Mindtree on March 18th after it signed a definitive Share Purchase Agreement with V G Siddhartha and his related entities namely, Coffee Day Trading Limited & Coffee Day Enterprises Limited, to acquire 20.32 per cent stake in Mindtree.