The Competition Commission of India (CCI) in a tweet said that Indias engineering and infrastructure major Larsen & Toubro's deal to acquire 66.15% of the total equity shareholding of Mindtree Limited has been approved.
Founders of Mindtree have publicly attacked L&Ts acquisition proposal despite the latter claiming that it would let the Bengaluru-based firm run independently.
L&T made an open offer after it signed a deal on March 19 with Mindtrees long-term investor and Cafe Coffee Day promoter VG Siddhartha to buy his 20.32% stake in the company for Rs 3,269 crore. It has tasked Axis Capital to buy an additional 15% shares from the open market.
Mindtree board had last month appointed the panel of independent directors to review L&Ts open offer and recommend by May 10 whether its shareholders would benefit by selling their shares or not. The open offer begins on May 14.
L&T, in its offer documents, has said that the purpose of acquiring control of Mindtree is mainly to grow revenue and profit of its asset light services business portfolio and increasing the consolidated return on equity.
On Tuesday, Mindtrees four-member independent directors committee appointed Khaitan and Co. as the legal advisor and ICICI Securities Ltd. as the financial advisor for assisting the committee in recommending shareholders on the open offer.
The committee has time till 10 May to send its recommendations to the shareholders, while L&T has the option to raise the open offer price or the offer size till 13 May.
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