Larsen & Toubro Ltd (L & T) received authorization from the Securities and Exchange Board of India (SEBI) to make an open offer to acquire more shares of IT firm Mindtree, based in Bengaluru, according to a CNBCTV report18 that quote sources.
The report also said that the infrastructure conglomerate will likely make its offer on June 18 at Rs 980 each.
L & T has been looking to seize Mindtree, the first hostile acquisition in India's IT sector, by increasing its stake by up to 66 percent. According to its plan and in compliance with SEBI regulations, it acquired 29 percent of the IT company, from which it purchased the 20.32 percent that was jointly owned by the founder of Cafe Coffee Day, V.G. Siddhartha and two of CCD's associated firms. The rest was added to their purchases made in the open market.
L & T has been buying shares gradually in May, to add an additional 15 percent of the open market and intended to buy another 31 percent of an open offer.
The draft of the open offer plan was submitted to SEBI and the exchanges on April 2 and was scheduled for May 14 to 27, according to one of L & T's previous statements. The draft was returned for some suggested changes and approval of the new draft was expected.
It is now expected that the Mindtree independent directors committee headed by Apurva Purohit will provide its opinions and recommendations to shareholders before the launch of the open offer.
Shares of L & T Ltd traded 0.1 percent lower at Rs 1,558.25 each, while Mindtree shares rose 0.37 percent to Rs 983.75 at 10:56 am Friday.
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