New Delhi, May 7 (SocialNews.XYZ) Larsen & Toubro Limited as the promoter will own 68.73 per cent stake in the combined entity created by the merger of Mindtree and L&T Infotech (LTI).
Mindtree, a leading digital transformation partner with market cap of Rs 578.4 billion will merge into LTI, a global technology consulting and digital solutions company with market cap of Rs 836.2 billion.
Subsidiaries and associates of Mindtree will become subsidiaries and associates of LTI.
The amalgamated entity will be named as 'LTIMindtree Limited', subject to approvals Closing Timeline and Approvals.
Transaction completion is subject to shareholders, creditors and regulatory approvals including from stock exchanges and NCLT.
Closing is expected to be achieved within 9 to 12 months, subject to completion of shareholder and regulatory approvals.
The shareholders of Mindtree as on record date will receive 73 shares of LTI (face value of Re 1 each) for 100 shares of Mindtree (face value of Rs 10 each).
Larsen & Toubro Limited (the promoter) will own 68.73 per cent stake in the combined entity.
The Boards of Directors of Mindtree and LTI at their respective meetings held on Friday approved a composite scheme of amalgamation of both these independently listed IT services companies under the Larsen & Toubro Group.
The proposed integration will see Mindtree and LTI join strengths to create an efficient and scaled up IT services provider exceeding $3.5 billion.
Both Mindtree and LTI have delivered market leading financial performance and created value for shareholders. Given that recent industry shifts (e.g., prominence of large deals, preference for end-to-end offerings) are benefiting at-scale players, the two companies have decided that the time is appropriate to combine the strengths of both organisations to better serve the customers, a statement said.
Significant scale benefits are anticipated through Mindtree and LTI's complementary strengths resulting in a stronger portfolio of offerings across verticals.
Enhanced customer engagement and delivery model through industrialisation of delivery and streamlined value-enabling processes is expected to result in improvement in large deal capabilities.
These opportunities will create a more distinctive employee value proposition and stronger partnerships with ecosystem players.
Source: IANS
About Gopi
Gopi Adusumilli is a Programmer. He is the editor of SocialNews.XYZ and President of AGK Fire Inc.
He enjoys designing websites, developing mobile applications and publishing news articles on current events from various authenticated news sources.
When it comes to writing he likes to write about current world politics and Indian Movies. His future plans include developing SocialNews.XYZ into a News website that has no bias or judgment towards any.
He can be reached at gopi@socialnews.xyz