The independent directors’ committee (IDC) at Mindtree on Wednesday said Larsen and Toubro’s open offer price of Rs 980 seemed “fair and reasonable”, and recommended that shareholders take independent but informed decision on tendering their shares.
“The IDC is of the opinion that as on the date of the public announcement, the offer price of Rs 980 offered by the acquirer, is in accordance with the regulations prescribed under the Sebi (SAST) regulations, and appears to be fair and reasonable,” the committee observed, said a regulatory filing by Mindtree to the exchanges.
“The shareholders of the target company are advised to independently evaluate the open offer and take an informed decision about tendering the equity shares held by them in the open offer,” it added. The observation of the panel is in stark contrast to the stance taken by the founders of the IT services company. Since L&T’s takeover bid, the Bengaluru-based firm’s current management was of the view that the offer price was grossly undervalued as it was way below the 52-week high of Rs 1,183 in the exchanges.
Reasoning out the recommendations, the panel said its member evaluated the closing price of Mindtree shares on the National Stock Exchange (NSE) as well as the BSE on June 10, 2019, which was the date of the recommendations.