Upon the scheme becoming effective, Mindtree shareholders get shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree

Mumbai, NFAPost: The Boards of Directors of Mindtree and LTI approved the merger of both these independently listed IT services companies under the Larsen & Toubro Group.

The proposed integration will see Mindtree and LTI join strengths to create a scaled-up IT services provider exceeding $3.5 billion. The transaction is subject to shareholder and regulatory approvals.

Given that recent industry shifts (e.g., prominence of large deals, preference for end-to-end offerings) are benefitting at-scale players, the two companies have decided that the time is appropriate to combine the strengths of both organisations to better serve the customers, said the group statement.

Upon the scheme becoming effective, all shareholders of Mindtree will be issued shares of LTI in the ratio of 73 shares of LTI for every 100 shares of Mindtree. The new shares of LTI so issued will be traded on the NSE and BSE. Larsen & Toubro Limited will hold 68.73% of LTI after the merger.

For now, the companies will continue to function independently. A Steering Committee will be constituted to oversee the transition till the merger process is complete. The name of the combined entity will be “LTIMindtree” leveraging the advantages of both the brands and creating value for all the stakeholders.

Speaking about the merger, A. M. Naik, Chairman, Mindtree, said, “This merger represents our continued commitment to grow the IT services business in line with our strategic vision. The highly complementary businesses of Mindtree and LTI will make this integration a ‘win-win’ proposition for our customers, investors, shareholders, and employees.”

KPMG India Services LLP acted as financial advisor to Mindtree.

JSA (Advocates and Solicitors) acted as legal advisors to Mindtree.

Goldman Sachs (India) Securities Private Limited provided fairness opinion to Mindtree on the

valuation done by the valuer for the proposed transaction.

Ernst & Young Merchant Banking Services LLP were appointed as valuers by Mindtree.


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