Larsen & Toubro Ltd (L&T) has received clearance from the Securities and Exchange Board of India (SEBI) to make an open offer to acquire more shares of Bengaluru-based IT firm Mindtree, according to a CNBCTV18 report citing sources.
The report further said that the infrastructure conglomerate will likely make its offer on 18 June at Rs 980 apiece.
L&T has been looking to take over Mindtree, the first hostile takeover in the Indian IT sector, by increasing its shareholding by up to 66 percent. According to its plan and in compliance with SEBI norms, it has acquired 29 percent of the IT firm, of which it purchased 20.32 percent that was jointly held by Cafe Coffee Day's founder V.G. Siddhartha and two of CCD's associate firms. The rest was added from its purchases made in the open market.
L&T has been gradually buying shares in May, to add an additional 15 percent from the open market and had intentions to purchase another 31 percent from an open offer.
The open offer plan draft was submitted to SEBI and the exchanges on 2 April and was scheduled to be held between 14 to 27 May, according to one of L&T's prior statements. The draft was sent back for some suggested changes and approval on the new draft was awaited.
Mindtree's independent director committee headed by Apurva Purohit will now be expected to give its views and recommendations to the shareholders before the open offer launch.