Larsen and Toubro Ltd. (L&T) is likely to buy the 20.4% stake held by Café Coffee Day (CCD). Founder V.G. Siddhartha along with his two Café Coffee Day affiliate firms in Mindtree Ltd. Followed by an open offer to buy an additional 31% stake in the company as early as Monday evening, according to people familiar with the development.
L&T has agreed to pay ₹981 per share to buy the entire stake held by Siddhartha and two of his CCD firms. Thereby valuing Mindtree at ₹16,250 crore, a person directly aware of the development said.
L&T is set to use a section of the takeover code stipulated by the Securities and Exchange Board of India (Sebi). Rarely employed to take over a listed firm, thereby making it the first hostile takeover ever in the information technology (IT) outsourcing space.