Larsen & Turbo(L&T) is in early stages of closing a deal with Cafe Coffee Day. This will allow VG Sidhhartha to capture his 21% stake in Mindtree. It will also allow an additional stake of 31% in IT Company.
The engineering conglomerate is however seen as a buyback proposal to thwart the L&T bid. This will happen in a board meeting on Wednesday.
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L&T is however considered to announce the acquisition of 20.4% of its stake. The quoted offering of another 31% may be for the valuation of INR 980 a piece. It will thus serve as a 4% premium to the earlier closing price.
KPMG being the lead advisor also involves Citi and Axis Capital as the decision influences.
Thus, the decision will reverse the approval of shareholder for buyback option of up to 10%.