Mahindra & Mahindra to buy 5.5 percent of BT's stake in Tech Mahindra
Saturday, 27 November 2010, 01:28 IST
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MUMBAI: Auto giant Mahindra & Mahindra today said it has agreed to acquire 5.5 percent of IT firm Tech Mahindra's stake from UK-based British Telecommunications Plc (BT). UK?s largest fixed-line phone company BT holds 30 percent stake in Tech Mahindra. "Pursuant to a proposal received from BT, the company has agreed to acquire 5.5 percent of the equity shares of Tech Mahindra from BT over time through an inter-se transfer among qualifying promoters at a market related price, in accordance with the SEBI regulations," M&M said in a filing to the Bombay Stock Exchange. Financial details of the deal were not disclosed. M&M will also waiver rights to buy BT's remaining stake in the software services provider, and the agreement will automatically terminate if BT's stake in Tech Mahindra falls below 10 percent, the filing said. The company has also agreed to consider further proposals from BT in this regard, it added. Meanwhile, M&M share was trading at Rs 759.80, down by 2.75 percent from its previous close on the BSE. UK's largest fixed-line phone company BT holds 30 percent stake in Tech Mahindra. "Pursuant to a proposal received from BT, the company has agreed to acquire 5.5 percent of the equity shares of Tech Mahindra from BT over time through an inter-se transfer among qualifying promoters at a market related price, in accordance with the SEBI regulations," M&M said in a filing to the Bombay Stock Exchange. Financial details of the deal were not disclosed. M&M will also waiver rights to buy BT's remaining stake in the software services provider, and the agreement will automatically terminate if BT's stake in Tech Mahindra falls below 10 per cent, the filing said. The company has also agreed to consider further proposals from BT in this regard, it added. Meanwhile, M&M share was trading at Rs 759.80, down by 2.75 percent from its previous close on the BSE.
Source: PTI
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