Mindtree CEO Rostow Ravanan likely to resign in coming weeks as L&T becomes majority shareholder in IT firm
New Delhi: Mindtree Chief Government Officer Rostow Ravanan is more likely to resign within the coming weeks with infrastructure main L&T turning into a majority shareholder within the mid-sized IT firm, based on sources.
Larsen and Toubro (L&T) had initiated a hostile takeover of Mindtree Ltd in March and has since then expanded its shareholding to a majority stake with massive buyers, like Nalanda, promoting their shares within the ongoing open supply.
Mindtree founders had resisted the bid and had tried rallying help from Singapore-based Nalanda Capital and others.
One of many sources stated Mindtree founders had supported Ravanan’s continuation to make sure enterprise continuity however given the developments over the previous few weeks, Ravanan will likely be anticipated to step down from his position within the coming weeks.
E-mails despatched to Mindtree didn’t elicit any response.
One other supply stated the founders, which embrace Subroto Bagchi, NS Parthasarathy and Krishnakumar Natarajan (who collectively maintain about 13 %), could take a look at promoting their shares as properly within the open supply that concludes on 28 June.
Curiously, L&T has lately secured three board positions at Mindtree that has eight members on the board (of which 4 had been unbiased administrators).
Mindtree co-founder Subroto Bagchi didn’t supply being thought of for re-appointment to the board. The IT agency remained silent on the way it plans to accommodate the three new L&T representatives.
In March, L&T had stated it is going to purchase 20.32 % stake in Mindtree from VG Siddhartha and his espresso enterprise for over Rs 3,000 crore, marking India’s first-ever hostile takeover bid within the IT house.
Since then, L&T has steadily elevated its holding within the Bengaluru-based tech agency to about 30 %. L&T is presently within the means of an open supply to purchase an extra 31 % stake.
The open supply, with a proposal worth of Rs 980 per share, opened on 17 June and is slated to shut on June 28. If the supply of 5.13 crore shares is subscribed totally, the engineering behemoth will find yourself with a 66.32 % holding in Mindtree.
As of 26 June, L&T’s open supply had acquired bids for 4.83 crore shares or 94.16 % of the supply.
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