The open offer for acquisition of over 5.13 crore equity shares, representing 31% of the voting share capital of Mindtree, will now open on June 17 and end on June 28
Engineering major Larsen and Toubro (L&T) on Friday put out its delayed letter of offer for Mindtree shares without raising the Rs 980 per share offer price and said that there were no competing offers for the mid-size IT firm. The open offer of nearly Rs 5,030 crore for acquisition of over 5.13 crore equity shares, representing 31% of the voting share capital of Mindtree, will now open on June 17 and end on June 28.
Earlier, the open offer was supposed to commence on May 14 and end on May 27. However, L&T delayed in sending responses to the queries raised by the Securities and Exchange Board of India regarding the letter of offer. Mindtree shares closed up 0.39% at Rs 969, while Larsen and Toubro’s share price closed down 0.21% at Rs 1,513.25 at BSE BSE on Friday .
The last date by which a committee of independent directors of the target company (Mindtree) is required to give its recommendation to its shareholders for this offer is June 13, 2019. FE had reported on June 1 that since the open offer was back on cards after getting delayed from the earlier date of May 14, the independent directors committee (IDC), headed by Apurva Purohit, might soon submit its recommendation in respect of the offer by L&T for the consideration of the shareholders. Based on the legal provisions, the independent directors’ committee needs to make its recommendations before the open offer opens.
Meanwhile, the last date for upward revision of the offer price and/or the offer size is June 14, 2019, according to the filing on the exchanges. After having acquired a near 20% stake in Mindtree from Cafe Coffee Day founder V G Siddhartha in March, L&T mandated Axis Capital to buy as much as 15% shares of Mindtree from the open market. Over the last few weeks, the engineering major has been busy shoring up shares in the IT firm. The total shareholding of L&T as on June 6, 2019 stood at 28.90%, according to data on BSE.
On March 18, L&T had signed a definitive share purchase agreement with Siddhartha and his related entities — Coffee Day Trading Limited and Coffee Day Enterprises Limited — to acquire 20.15% stake in Mindtree at `980 per share aggregating to approximately `3,269 crore.