Mindtree acquisition: L and T boss keen on building a big firm
New Delhi
The $20 billion conglomerate, which has taken its overall holding in Mindtree to about 26 per cent, will launch the open offer to buy additional stake in around 10 days, he added.
“We continuously look for opportunities as they come by, but right now our mind is completely occupied on Mindtree and I hope we will be able to eventually make this into a big company as well,” Naik said here. Naik said Mindtree’s acquisition was top on L&T’s agenda right now.
“We have got around 26 per cent stake in Mindtree and now we will wait till we get 51 per cent. The open offer will be launched in about 10-12 days time,” he added.
Naik joined L&T in 1965 as a junior engineer and rose to the position of CEO and MD in 1999 and chairman in 2003. In 2017, he stepped aside from executive responsibilities and took over as Group Chairman.
On delays in approval for the open offer, Naik said: “In about 10 days it will start.”
Elaborating on Mindtree promoters’ opposition to the hostile takeover bid, Naik said they are obviously attached to their company, but have started to realise that L&T is also an employee-centric organisation.
“Mindtree promoters are obviously attached to their company, so they don’t easily want to give up. But now they realise that L&T is a very nice company which is excellent to its employees too.
“I think slowly they also feel...they wanted to sell it anyway. Altogether it is about 12 per cent (stake) and we are not saying you sell and go. Whenever they sell and if they want to sell it to us, we will buy the stake,” he said.
Naik stressed that Mindtree is over a billion dollar acquisition and there is huge potential for growth in the segment. “I hope we will do better and do great things. ... in IT and engineering service, once we complete our acquisition of Mindtree, we will be $3 billion and our idea is in three to four years, take it to $5 billion,” he asserted.
He added: “It was zero when I took over....application of new generation of technologies is now a major focus for us with L&T Nxt and I hope we will do a great job in this area.”
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