The Competition Commission of India said it approved diversified group Larsen & Toubro Ltd.'s proposed acquisition of up to a 66.15 percent stake in IT firm Mindtree Ltd.
L&T has made an unsolicited offer to acquire a majority stake in Mindtree and a committee of the IT firm's independent directors is looking into it. Deals beyond a certain threshold require clearance from the fair trade regulator.
@CCI_India approves acquisition of up to 66.15% of the total equity shareholding of Mindtree Limited, on a fully diluted basis, by Larsen and Toubro Limited"
April 5, 2019L&T acquired Cafe Coffee Day-owner VG Siddhartha's 20.32 percent stake in Mindtree and has also placed an order with brokers to pick up another 15 percent shares from the open market. Besides, an open offer has been made to buy over 5.13 crore or around 31 percent stake for Rs 5,030 crore.
The total deal value is estimated to be around Rs 10,800 crore.
Earlier this month, the independent directors' panel of Mindtree roped in Khaitan and Co. and ICICI Securities as independent advisors.
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