Mumbai: Larsen and Toubro Ltd (L&T) has now bought a controlling stake in IT services company Mindtree Ltd, CNBC TV18 reported citing sources. Prior to this, Mindtree had been rejecting reports regarding a hostile takeover bid from L&T, saying that the plan was of no value for the firm or its shareholders. L&T's bid to acquire a controlling stake in Mindtree is the first in India's software services industry and is rare in India's corporate sector, where unsolicited suitors are usually deterred by founders with large shareholding, reported Reuters. The Mumbai-based construction giant increased its stake in Mindtree to 51%, the channel reported, adding L&T got over 21% stake through open offer so far.
In March, L&T bought a fifth of Mindtree from coffee baron V G Siddhartha and companies related to him for Rs 32.69 billion ($474.73 million) and said it planned to raise its stake to 66 per cent. As of March 19, Mindtree founders, including Executive Chairman Krishnakumar Natarajan and Chief Executive Rostow Ravanan owned a combined 13.3 per cent stake in the company. Since March, L&T kept buying stake in Mindtree from its promoters and through an ongoing open offer. Mint reported Singapore-based Nalanda Capital on Monday sold its entire 10.61 per cent stake in the IT services firm to L&T in the offer.
