M & M To Acquire Additional Stake In Tech Mahindra BT Group

Mahindra & Mahindra (M & M) announced Friday it would acquire an additional 5.5 per cent in its group company Tech Mahindra British Telecom giant BT Group plc. Quarter ended September 30 BT Group holds 30 per cent stake in Tech Mahindra, while M & M has 43 percent stake in the company. In today's market, or 5.5 per cent stake in Tech Mahindra translates to Rs 433 crore.

"Under a proposal from BT Group Plc, M & M has agreed to acquire up to 5.5 percent of the share of Tech Mahindra BT Group" over time "through an international transfer self-promoters at a price called market-related M & M said in a statement on the Bombay Stock Exchange.

In a separate statement on the London Stock Exchange, BT, Tech Mahindra said it will remain a key strategic supplier for the company, while additional sales can be taken into account in the future. The company plans to continue with a stake in the company for some time.

M & M also has agreed to grant a waiver of its right to adjudicate BT preferences under the shareholders agreement between them for the rest of BT's participation in Tech Mahindra, M & M has not agreed to acquire, under certain conditions. In addition, M & M and BT has also agreed that as the balance of participation in Tech Mahindra BT is less than 10 percent of the issued share capital of Tech Mahindra.

The agreement between M & M, Tech Mahindra and BT will be terminated automatically.Tech Mahindra, which was developed from a joint venture between two companies in 1986, an annual turnover of over $ 1 billion. Mahindra, which is based in Pune, last year bought Satyam Computer Services Ltd, the software developer involved in India's largest fraud probe of the company.