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This is an archive article published on March 24, 2010
AT038;T buys 8 in Tech Mahindra for 197 million
US telecom giant ATamp;T Inc has bought an 8.07 per cent stake in Indian IT services firm Tech Mahindra Ltd for about Rs 900 crore 197 million from the BT group of the UK.
Written by ENS Economic Bureau
Mumbai | March 24, 2010 01:05 AM IST
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AT038;T buys 8 in Tech Mahindra for 197 million
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US telecom giant ATamp;T Inc has bought an 8.07 per cent stake in Indian IT services firm Tech Mahindra Ltd for about Rs 900 crore 197 million from the BT group of the UK. The deal value is based on Tech Mahindra8217;s closing stock price of Rs 911.85 on Monday.
The US firm,which is one of the leading clients of the Mamp;M group company,bought 9.87 million shares of Tech Mahindra through off-market purchase on Monday,according to data on the National Stock Exchange website.
After the stake sale,BT8217;s holding has reduced from 30.86 per cent to 22.79 per cent. BT is likely to use proceeds for internal debt clearance and will further reduce its stake in Tech Mahindra.
Ahead of the announcement on Tuesday,shares in Tech Mahindra,ended down 0.2 per cent at Rs 910.20 on the BSE. BT group of the UK is also the largest customer,accounting for about 40 per cent of its revenue.
Tech Mahindra acquired control of Satyam Computer at an auction last year. A government-appointed board sold the Hyderabad-based Satyam at the centre of Indias biggest corporate fraud to prevent clients and employees from defecting.
Tech Mahindra,which employs 30,000 people,is a leading provider of solutions and services to the telecommunications industry.
Tech Mahindra had signed a US 400 million deal with ATamp;T in 2005. ATamp;T contributes 12 of Tech Mahindras revenues.
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