Mindtree logo sits on one of its campus in Bengaluru, India. (Photographer: Nishant Sharma/BloombergQuint)

Mindtree Independent Directors’ Panel Says L&T’s Open Offer Price Is Fair

Independent directors’ panel of Mindtree Ltd. has said that Larsen & Toubro Ltd.’s open offer price at Rs 980 per share appears “fair and reasonable”.

The committee cited the closing market price of Mindtree shares on the stock exchanges on June 10, being “lower than the offer price” and said that L&T’s offer price of Rs 980 a share is in accordance with the regulations and “appears to be fair and reasonable”.

The closing price of Mindtree shares was Rs 975.50 apiece on National Stock Exchange and Rs 974.65 a share on Bombay Stock Exchange on June 10, Mindtree said in a regulatory filing on Wednesday.

“The shareholders of the target company are advised to independently evaluate the open offer and take an informed decision about tendering the equity shares held by them in the open offer,” the company said in a regulatory filing on Wednesday.

On June 7, infrastructure major Larsen & Toubro announced a Rs 5,030-crore open offer to acquire an additional 31 percent stake in the mid-tier information technology company at a price of Rs 980 per share. L&T has so far acquired 28.9 percent stake in Mindtree and the open offer, if fully subscribed, will take its shareholding in the IT company to about 60 percent.

In all, the infrastructure major is eyeing about 66 percent stake in Mindtree for over Rs 10,700 crore—though a mix of recent stake acquisition from Cafe Coffee Day owner VG Siddhartha, the ongoing open market transactions and the ensuing open offer. The open offer is slated to commence on June 17 and close on June 28.

Also read: Mindtree Needs A White Knight To Replace Siddhartha, Co-Founder Ashok Soota Says