India,United Kingdom : BRITISH FIRM BT sold its 14.1% stake in TECH MAHINDRA to Institutional Investors for Rs 1395 cr.
According to the BT, it will mull over more disposal of the IT company s share in future as well because it plans to get rid of its shareholding in Tech Mahindra. Meanwhile, the top IT firm is involved in amalgamation procedure with Mahindra Satyam. With the stake sale, BT now has about 9.1% in Tech Mahindra, in which it was previously a joint venture partner.
The Tech Mahindra s stock has been witnessing pressure in view of the global telecom giant s planning to sell his stake, which makes to slow down its price compared with the players in the sector. The turmoil in the worldwide telecom business has also impacted the expansion pace of Tech Mahindra.
Top IT service providers in the country like Tata Consultancy Services receive the biggest portion of their incomes from the banking, financial services and insurance (BFSI) division.
The financial impact of the disposal is expected to be treated as an income statement specific item in BT s next financial results, revealed the statement of BT. Tech Mahindra would continue to be a key supplier for the BT Group, it added.
Though BT is the biggest client of Tech Mahindra, yet its input in the Indian giant has been dwindling since the UK company has assigned work to other suppliers and resettled a few of its agreements with Tech Mahindra.
Tech Mahindra s overall June quarter revenues had 36% contribution from the British firm.
BT sold its shares in Tech Mahindra on Thursday via an array of open market dealings on BSE and NSE. BT disposed an overall of 17.9 million shares to institutional investors for about Rs 1,394.90 crore at an average price of Rs 777.73 a share, which was about 6.8% reduction from Tech Mahindra s closing price on Wednesday. The Indian brokerage wings of JP Morgan and Credit Suisse had supervised the sale.
Tech Mahindra shares saw huge pressure for most part of the Thursday at the BSE and declined by about 5.2% to stand at Rs 792.15 during closure of the day s trading. The stock had touched a 52-week high of Rs 887.70 on August 27.
BT, one of the world s key suppliers of communication services and solutions, offers services to over 170 country-based customers. In offloaded its 5.5% stake in Tech Mahindra to Mahindra and Mahindra (M&M) in 2010.
2012 Al Bawaba (Albawaba.com)
Provided by Syndigate.info an Albawaba.com company
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|Date:||Sep 3, 2012|
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