BT selling about 5% of Tech Mahindra1 min read . Updated: 30 Aug 2012, 08:44 AM IST
BT selling about 5% of Tech Mahindra
Mumbai: British telecom firm BT Group Plcis selling about 5% of Indian IT service provider Tech Mahindra Ltdfor about $100 million, two sources with direct knowledge of the situation said on Wednesday.
Tech Mahindra could not immediately be reached to comment,
BT, the second-largest stakeholder in Tech Mahindra, declined to comment on the story. The group has said it may consider selling Tech Mahindra shares in the future if markets proved attractive.
Britain’s biggest fixed line telecom company, which relied on deep cost cuts to lift its core earnings 2% in the first quarter, had a 23% stake in the company at end-June, according to the stock exchange data.
Tech Mahindra, which provides technology services to telecoms companies including BT and AT&T Inc., is majority-owned by Mahindra and Mahindra Ltd, India’s larger maker of sports utility vehicles and tractors.
JPMorgan and Credit Suisse are advising BT on the share sale, and the shares will change hands on the Indian stock exchanges via block deals on Thursday morning, the sources said. They declined to be named as they were not authorized to speak to the media.
Local media had earlier reported that some global private equity firms had shown interest in buying the British company’s stake in Tech Mahindra.