InvestorQ : I have some shares of Mindtree. I read that L&T has acquired Mindtree, so what should I do as an investor? Should I hold or sell out?
Nisha Chandani made post

I have some shares of Mindtree. I read that L&T has acquired Mindtree, so what should I do as an investor? Should I hold or sell out?

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Anu Biswas answered.
2 years ago
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There are a couple of points you must note here. Firstly, L&T has not yet acquired Mindtree. Some time back, V G Siddhartha of Coffee Day who had a 20% stake in Mindtree had sought a buyer for his stake in Mindtree. That is when L&T chipped in and agreed to buy the stake. After buying the 20% stake from Siddhartha, L&T has now bought another 5.94% stake through open market transactions. So now L&T has a 25.94% stake in Mindtree. As per existing SEBI regulations, once the 26% limit is touched, then the acquirer will have to make an open offer to existing shareholders of Mindtree. So, first this open offer has to be approved by SEBI and later the shareholders will have to accept it.

L&T intends to by up to 66% stake in Mindtree but the founding promoters of Mindtree have been against L&T taking over management control of Mindtree. For L&T, it is about adding digital business to its existing software offerings and makes it more diversified. So the entire deal will still take quite some time. The most important issue will be what the FIIs will do since they own close to 40% of Mindtree. You will know all that only after the open offer is made by L&T.

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