homebusiness Newscompanies NewsHere's what the Mindtree CEO has to say about the L&T Infotech merger buzz
Here's what the Mindtree CEO has to say about the L&T Infotech merger buzz
Debashis Chatterjee the MD & CEO of Mindtree, said that both Mindtree and L&T Infotech have worked successfully together in the past but called the merger news speculative at this point in time.
The buzz on Dalal Street is that Larsen & Toubro (L&T) might merge its tech arms -- Mindtree and L&T Infotech -- into a $22 billion firm. The deal is expected to be signed next week. Speaking to CNBC-TV18, Debashis Chatterjee the MD & CEO of Mindtree, neither confirmed nor denied the news.
"It is speculation at this point in time and we are not able to comment on it. Having said that, after the management change happened, there are opportunities where we have worked together. I mean that is all I can say that there are leverages that we gain by working together and we have worked together in the past also on the specific deals and that will continue," he said.
Merger On The Table | @Reematendulkar caught up with @Mindtree_Ltd MD & CEO Debashis Chatterjee on the buzz around a potential merger between the company and L&T Infotech who says the board has to take a call on a merger with L&T Infotech pic.twitter.com/hxxXFXMTIW
— CNBC-TV18 (@CNBCTV18News) April 19, 2022
The background
When L&T took control of Mindtree, the previous management had tried to thwart the deal, calling the takeover "value destructive". Promoters NS Parthasarathy, Rostow Ravanan, and Krishnakumar Natarajan unconditionally opposed the takeover bid. These Mindtree co-founders quit after L&T bought the controlling stake.
At the time, L&T had said Mindtree would be run as a separate entity, distinct from L&T Infotech and L&T Technology Services. It remains to be seen how employees and shareholders of Mindtree would take the news of L&T mulling a merger of its tech arms.
The Mindtree deal started when L&T bought 20.32 percent shares in Mindtree from Cafe Coffee Day founder VG Siddhartha in March 2019. It also made the on-market purchase of around 15 percent capital shares. In June 2019, L&T made an open offer for an additional 31 percent stakes.
For the entire management interview, watch the video
(Edited by : Abhishek Jha)
First Published: Apr 19, 2022 1:01 PM IST
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