UK incumbent BT has said it completed the sale of a 5.5% stake in software unit Tech Mahindra to Indian carmaker Mahindra & Mahindra for £63m.
The company used in-house advisers for the sale. According to previous reports, BT had also hired Credit…
UK incumbent BT has said it completed the sale of a 5.5% stake in software unit Tech Mahindra to Indian carmaker Mahindra & Mahindra for £63m.
The company used in-house advisers for the sale. According to previous reports, BT had also hired Credit Suisse on the deal.
The British company has been looking to sell part of its stake for quite some time now, as it struggles with a £9bn pension deficit, according to reports.
“Following this sale, BT has a 24.4% shareholding in Tech Mahindra. Tech Mahindra remains a key supplier to BT and, while further sales may be considered in the future, BT expects to continue to have a shareholding in Tech Mahindra for some time,” the UK company explained in a statement.
Mahindra & Mahindra, which owns 43% of Tech Mahindra, said in a statement late November that it agreed to grant BT a waiver of its pre-emption rights for BT’s remaining shareholding in Tech Mahindra, subject to certain conditions.
According to experts in the industry, BT may eventually sell its entire stake, depending on the buyer’s appetite.
BT and M&M set up Tech Mahindra in 1986 as a provider of IT services to the telecommunications sector.
