NEW DELHI: Seeking to acquire scale and efficiency, the Boards of Directors of Mindtree and L&T Infotech (LTI) on Friday approved merger of the two public-listed companies of the L&T Group.
“Mindtree, a leading digital transformation partner with market cap of Rs 578.4 billion (market cap as of May 5) will merge into LTI, a global technology consulting and digital solutions company with market cap of Rs 836.2 billion,” L&T Infotech said in a stock exchange filing.
The name of the combined entity will be LTIMindtree and the transaction is expected to be closed in 9-12 months. After the merger, the total revenue of the combined entity would be around $ 3.5 billion.
As per the composite scheme of amalgamation approved by the respective board, all shareholders of Mindtree will be issued shares of LTI at the ratio of 73 shares of LTI for every 100 shares of Mindtree.
“The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Limited will hold 68.73% of LTI after the merger,” the companies said in separate filings on the BSE.
The transaction is subject to shareholder and regulatory approvals.
AM Naik, Chairman, Mindtree said the merger represents the group’s continued commitment to grow the IT services business in line with its strategic vision.
“The highly complementary businesses of Mindtree and LTI will make this integration a ‘win-win’ proposition for our customers, investors, shareholders, and employees,” he said.