Mindtree not to go ahead with share buy-back

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Panel to examine L&T’s open offer

The board of Mindtree Ltd. on Tuesday decided not to go ahead with its proposed buy-back of equity shares amid a ‘hostile’ attempt by Larsen & Toubro to acquire a majority stake in the Bengaluru-based IT firm.

Additionally, the board has formed a committee of independent directors (IDC) to look into and provide recommendations on the “unsolicited” open offer by L&T to buy 5.13 crore Mindtree shares (about 31% stake) at ₹980 apiece. The committee has time till May 10 to give its recommendation to the company’s shareholders on the open offer.

“The board, in its meeting today, decided to immediately constitute the 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 communiqué to the stock exchange.

All the independent directors will be members of the IDC. Apurva Purohit, lead independent director, has been elected as the chairperson of the IDC.

The IDC will consider and evaluate all aspects of the “unsolicited offer,” taking into account all relevant facts, circumstances, data related to the company and industry and the interests of all stakeholders involved.

“This committee will discharge the legal obligations placed on the independent directors under the prevailing regulations with respect to providing reasoned recommendations on the unsolicited offer by L&T. This committee will be supported by independent legal and financial advisors to help it with its deliberations,” it said.

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