BT selling $183 million stake in Tech Mahindra

MUMBAI Wed Dec 12, 2012 12:57am IST

Related Topics

Stocks

   
Priyanka Gandhi Vadra, daughter of Congress party chief Sonia Gandhi, adjusts her flower garlands as she campaigns for her mother during an election meeting at Rae Bareli in Uttar Pradesh April 22, 2014. REUTERS/Pawan Kumar

Election 2014

More than 814 million people — a number larger than the population of Europe — are eligible to vote in the world’s biggest democratic exercise.  Full Coverage 

MUMBAI (Reuters) - BT (BT.L) is selling its 9.1 percent stake in Tech Mahindra (TEML.NS) in a deal expected to raise about $183 million and see the British telecoms operator exit an Indian IT services group it co-founded more than two decades ago.

The Tech Mahindra shares are being sold at a floor price of 855 rupees, according to a term sheet seen by Reuters, a discount of 2.8 percent from Tuesday's 879.50 rupees closing price. The stock is up about 53 percent this year.

BT, which set up technology outsourcing services provider Tech Mahindra with India's Mahindra & Mahindra Ltd (MAHM.NS) in 1986 and was its second largest shareholder in the past, has been gradually paring its stake in the Indian joint venture.

It sold 14.1 percent of Tech Mahindra stake for about $250 million in August.

Britain's biggest fixed-line telecoms company is also one of the major clients of Tech Mahindra, which provides technology services to global telecoms operators, and its exit is likely to cloud the outlook for future contracts from BT.

JPMorgan (JPM.N) and Credit Suisse (CSGN.VX) are advising BT on the share sale, and the shares will change hands on the Indian stock exchanges via block deals on Wednesday morning, the term sheet showed.

BT had to rely on deep cost cuts to maintain its full-year earnings outlook after an adverse regulatory ruling and weak European corporate demand sent revenues down 9 percent in the second quarter.

BT's stake sale in Tech Mahindra adds to a busy week for equity offerings in Asia's third-largest economy, with more than $2 billion worth of share deals likely to be closed by Friday, after a lacklustre first half of the year.

The government's sale of a $1.1 billion stake in miner NMDC Ltd (NMDC.NS) is set for Wednesday, while leading telecoms tower operator Bharti Infratel is selling shares to raise up to $830 million in the country's biggest IPO in two years.

(Additional reporting by Indulal P.M. and Abhishek Vishnoi; editing by Dan Lalor and Keiron Henderson)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Election 2014

Election 2014

Kashmiris wary as Modi challenges for power.  Full Article 

Facebook's Performance

Facebook's Performance

Facebook Q1 revenue grows 72 percent on rising mobile ads.  Full Article 

Earnings Season

Earnings Season

Bharti Infratel Q4 net profit jumps 64 percent.  Full Article 

Monsoon Forecast

Monsoon Forecast

South Asia monsoon seen below-average to average in 2014 - WMO.  Full Article 

Solar Dispute

Solar Dispute

Green groups urge U.S. to drop solar trade case against India.  Full Article 

Oil Imports

Oil Imports

India to make May-July oil payments to Iran - sources.  Full Article 

Rice Exports

Rice Exports

India may cede top rice exporter spot under Southeast Asian price onslaught.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage