Mindtree spikes buyback plan
Mindtree said it has decided to constitute a Committee of Independent Directors to evaluate the L&T offer.
Mumbai: The board of Mindtree Ltd decided not to proceed with the buyback of equity shares of the company even as Larsen & Toubro Ltd (L&T) made an open offer on Tuesday to buy 31 per cent stake in the Bengalurur-based IT services firm for Rs 5,030 crore.
Mindtree said it has decided to constitute a Committee of Independent Directors to evaluate the L&T offer.
All independent directors of the Mindtree board will be members of the panel, which has elected lead independent director Apurva Purohit as chairperson of the committee.
“After detailed deliberation and discussion, the Board in its meeting today, decided to immediately constitute the Committee of Independent Directors (IDC) in the interest of all stakeholders to provide their reasoned recommendation in respect of the unsolicited offer by L&T for the consideration of the shareholders," Mindtree said in a statement.
On its part, L&T has offered to buy 51.3 million Mindtree shares from public shareholders at a price of Rs 980 a share.
Mindtree’s committee of independent directors will have to give its recommendations to the shareholders regarding the open offer by May 10. Any revisions in share pricing or offer size will have to be done by L&T before May 13, according to the L&T announcement.
“The acquisition is expected to be value accretive for both the acquirer’s shareholders and target company’s shareholder in the medium to long term,” it added.