L&T sells 2.32% stake in Mahindra Satyam for Rs306 cr

L&T sells 2.32% stake in Mahindra Satyam for Rs306 cr

Mumbai: Larsen & Toubro, one of the failed suitors for scam-hit Satyam Computer, on Friday sold 2.32% stake in the IT company (now Mahindra Satyam) for over Rs306 crore, exactly a month after the lock-in perid on sale of its holding ended.

The engineering major, which still holds 4.58% in Mahindra Satyam, informed the bourses that it has “divested over 2.72 crore shares in Mahindra Satyam on November 13, 2009."

The sale was for a consideration of Rs306.54 crore, at a share price of Rs112.52. The remaining stake held by L&T is currently worth over Rs600 crore.

Shares of Satyam plunged 6.6% to Rs109.70, while L&T settled 0.17% up at Rs1,643.55 on the BSE.

L&T was keen on acquiring the erstwhile Satyam Computer and had increased its stake in the IT company to 12% in phases. It had acquired nearly 6% in January for around Rs206 crore.

However, it lost the bid to Tech Mahindra, which acquired 31% stake in the scam-hit Satyam Computer for Rs1,756 crore. Satyam, which became embroiled in a financial fraud spawned by its founder Ramalinga Raju in January 2009, has since been rebranded as Mahindra Satyam by its new owner.

But L&T could not sell its stake immediately, as regulatory norms required it to hold the shares for at least six months since it was a potential suitor and was privy to confidential information. The lock-in period ended in October.

L&T’s Rs42 a share offer for Satyam was outbid by Tech Mahindra, which offered Rs58 a share, and acquired 31% in the IT company for Rs1,756 crore in April.

After Mahindra Satyam’s equity base expansion, post an open offer from Tech Mahindra, L&T’s holding came down from around 12% to the present 6.9%.