L&T To Trim Satyam Stake
Larsen & Toubro (L&T), the country’s largest engineering company, is likely to raise over Rs 300 crore by selling one-third of its stake in Mahindra Satyam. The engineering major has put put 2.7 crore Mahindra Satyam shares on the block with an asking price of Rs 112.50 a piece.
L&T had bought 8.1 crore shares in the Hyderabad-based software exporter last year at an average price of Rs 79 a share. It also made an abortive bid to acquire the company. Tech Mahindra, part of the Mahindra group, acquired the company, and renamed it Mahindra Satyam.
L&T’s shareholding then amounted to 12% of Satyam’s equity capital. But expansion of share capital after the takeover brought it down to 6.9%. At current market price, L&T’s stake is pegged at Rs 951 crore. Under terms of the Satyam sale, bidders were barred from selling their stakes acquired prior to the bid for six months, as they were given access to confidential financial information of the fraud-hit company.
The company has appointed Nomura for the sale.
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