Mindtree says L&T's open offer price at Rs 980/share fair, reasonable

Independent Directors' panel of Mindtree has said that Larsen and Toubro's open offer price at Rs 980/share appears "fair and reasonable". The committee cited the closing market price of Mindtree shares on the stock exchanges on June 10, being "lower than the offer price" and said that L&T's offer price of Rs 980 a share is in accordance with the regulations and "appears to be fair and reasonable". Mindtree shares closed at Rs 975.50 a piece on NSE and Rs 974.65 a share on BSE.

"The shareholders of the target company are advised to independently evaluate the open offer and take an informed decision about tendering the equity shares held by them in the open offer," the company said in a regulatory filing on Wednesday. On June 7, the infrastructure major Larsen & Toubro announced a Rs 5,030-crore open offer to acquire an additional 31 per cent stake in mid-tier IT company Mindtree at a price of Rs 980 per share. L&T has so far acquired 28.90 per cent stake in Mindtree and the open offer, if fully subscribed, will take its shareholding in the IT company to about 60 per cent.

In all, the infrastructure major is eyeing about 66 per cent stake in Mindtree for over Rs 10,700 crore -- though a mix of recent stake acquisition from Cafe Coffee Day owner, the ongoing open market transactions and the ensuing open offer.

The open offer is slated to commence on June 17 and close on June 28.