Mindtree Board on Wednesday said that the on the proposed buyback of equity shares to stave off L&T’s efforts of a hostile takeover has been adjourned to a future date.
“The Board considered the proposed buyback of equity shares of the Company at its meeting held on March 20, 2019 (today). Following detailed discussions, the meeting has been adjourned to a future date. No decision has been taken in relation to the proposed buyback of equity shares,” Mindtree said in a regulatory filing.
On Monday, L&T had announced that it has entered into an agreement with VG Siddhartha and his related entities — Coffee Day Trading Limited and Coffee Day Enterprises Limited — to take hold of 20.32 per cent stake in the firm at Rs 980 per share. It aggregates to around Rs 3,269 crore. Interestingly, the stake owned by Mindtree promoters is only 13.32 per cent.
The three-stage takeover that includes market purchases and open offer is likely to cost L&T more than Rs 10,000 crore. The leading construction company is aiming for 66.32 per cent stake in Mindtree
The promoters of Mindtree led by Krishnakumar Natarajan, Subroto Bagchi, and Parthasarathy NS among others are calling the plan as a grave threat and a value-destructive.
Mindtree shares closed the day at Rs 953.25, up 9.95, or 1.05 per cent on BSE.