Baring, L&T lead bidders for stake buy in Mindtree

Bloomberg Bangalore/Hong Kong | Updated on March 01, 2019 Published on March 01, 2019


CCD founder Siddhartha to offload 20% stake valued at about ₹3,400 crore at the top of the price range

 Larsen & Toubro Infotech Ltd. and Baring Private Equity Asia are the leading bidders for a major stake in Mindtree Ltd., as the Indian tech services and consulting firms largest shareholder seeks to sell his holding, according to people familiar with the matter.

Larsen & Toubro and Baring are both offering ₹ 950 to 1,000 a share and a decision may come as soon as next week, one of the people said, asking not to be identified because the matter is private. V.G. Siddhartha, the largest shareholder in Mindtree, is selling a stake of about 20 percent that he holds through Coffee Day Enterprises and affiliated entities. The deal would be valued at about ₹3,400 crore ($480 million) at the top of the price range.

Other suitors including private equity firm KKR & Co. remain interested, the people said. No final decision has been made and the companies could still decide against pursuing a deal. Baring declined to comment. Larsen & Toubro Infotech, KKR and the office of V.G. Siddhartha did not respond to requests for comment.

Siddhartha is selling the stake as he shifts his attention from technology consulting to an expansion of his Cafe Coffee Day business. The chain is challenging Starbucks in India and is aiming to expand to more than 2,000 stores in the next few years. Mindtree competes with Larsen & Toubro, Infosys Ltd. and other rivals in supporting corporate customers that need tech expertise.

Mindtrees management would prefer the stake not go to Larsen & Toubro because of competitive tensions, one of the people said. However, that may not prove the deciding factor, the person said.

Mindtree shares have climbed about 8 percent this year and rose 2.5 percent in Friday trading.

Published on March 01, 2019

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