LTI, Mindtree to merge; integrated entity to be called ‘LTIMindtree’
BRAND-NEW DELHI: Larsen & Toubro Infotech (LTI) and Mindtree revealed a merger on Friday, with a goal to produce India’s next large-scale IT services player.
“The boards of directors of Mindtree and LTI at their particular meetings authorized a composite scheme of amalgamation of both these independently noted IT services business under the Larsen & & Toubro Group,” LTI said in a main filing to the bourses.
The proposed combination will see Mindtree and LTI sign up with strengths to create an efficient and scaled up IT companies surpassing $3.5 billion, the release said.
All investors of Mindtree will be issued shares of LTI at the ratio of 73 shares for every single 100 shares of Mindtree.
The new shares of LTI will be traded on both BSE and NSE. Besides, Larsen & & Toubro Limited will hold 68.73 percent of LTI after the merger, the release stated.
Till the merger is complete, both Mindtree and LTI will continue to operate individually.
“The name of the combined entity will be ‘LTIMindtree‘ leveraging the benefits of both the brand names and producing
worth for all the stakeholders,” the IT services company said.
Discussing the merger, A M Naik, chairman of Mindtree said: “This merger represents our ongoing commitment to grow the IT services organization in line with our tactical vision. The extremely complementary organizations of Mindtree and LTI will make this combination a ‘win-win’ proposition for our customers, investors, investors, and staff members.”
Larsen & & Toubro(L&T) got Mindtree in 2019, following an unusual hostile quote for a managing stake, the first such pursuit in India’s software services market.
L&T owns a little over 60% in Mindtree and a 74 per cent stake in L&T Infotech.
(With inputs from companies)
Published at Fri, 06 May 2022 11:20:38 +0000
