L&T set to buy 20% in Mindtree for Rs. 3,269 cr in hostile takeover bid

In what is billed as Corporate India’s first hostile takeover bid in the IT sector, Larsen & Toubro Ltd on Monday said it has entered into a definitive share purchase agreement with VG Siddhartha and his related entities, Coffee Day Trading Ltd and Coffee Day Enterprises Ltd, to acquire a 20.32 per cent stake in Mindtree.

L&T will purchase this stake at Rs. 980 per share, aggregating to approximately Rs. 3,269 crore.

Immediately following the filing of the public announcement, L&T placed an order with its broker for on-market purchase of up to 15 per cent of share capital of Mindtree at a price not exceeding Rs. 980 apiece.

It has announced an open offer as per SEBI takeover regulations to the public shareholders of Mindtree to purchase up to an additional 31 per cent of the outstanding shares of Mindtree at a price of Rs. 980 per share in cash.