New Delhi: Mahindra BT Investment has sold its entire 8.07 percent stake in IT company Tech Mahindra to U.S.-based communications firm AT&T. "AT&T has picked up the stake from one of the promoters, Mahindra BT Investment for $34.5 million. This is as per an agreement between AT&T and the promoter company in May 2005 before the IPO. AT&T has exercised the option to acquire the share," a Tech Mahindra spokesperson told PTI.
In a communication to the Bombay Stock Exchange (BSE), Tech Mahindra said that AT&T International has picked up 9.8 million equity in the firm, resulting in 8.07 percent stake in the firm. Shares of Tech Mahindra closed at Rs 910.20, down 0.18 per cent at the BSE. "The exercise price of the shares was $3.5022, and the total purchase consideration was $34.6 million," the statement added.
"As per the terms of a 2005 agreement with Tech Mahindra (formerly Mahindra British Telecom), AT&T was granted options over approximately 9.9 million shares. These options had vested, and the exercise date was approaching, so AT&T decided to exercise the options," AT&T said in a separate statement.
Tech Mahindra, which employs 30,000 people, is a leading provider of solutions and services to the telecommunications industry. It is majority owned by Mahindra & Mahindra, in partnership with British Telecommunications. As on December 31, 2009, Mahindra and Mahindra, Indian utility vehicle and tractor maker has 44 percent stake in the Tech Mahindra, while UK's telecommunications company BT has 38 percent stake.