Auto giant Mahindra & Mahindra (M&M) Ltd said it has agreed to acquire 5.5% of IT firm Tech Mahindra's stake from UK-based British Telecommunications Plc (BT).
UK’s largest fixed-line phone company BT holds 30% stake in Tech Mahindra. "Pursuant to a proposal received from BT, the company has agreed to acquire 5.5% of the equity shares of Tech Mahindra from BT over time through an inter-se transfer among qualifying promoters at a market related price, in accordance with the SEBI regulations," M&M said in a filing to the Bombay Stock Exchange.
Financial details of the deal were not disclosed. M&M will also waiver rights to buy BT’s remaining stake in the software services provider, and the agreement will automatically terminate if BT’s stake in Tech Mahindra falls below 10%, the filing said.
The company has also agreed to consider further proposals from BT in this regard, it added.
On Friday, M&M ended 3.02% down at Rs 757.65 on the Bombay Stock Exchange, while the benchmark Sensex closed 0.94% down at 19,136. 61 points.
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