Indian conglomerate Mahindra & Mahindra (M&M) considers raising its interest in Indian IT services and outsourcing business Tech Mahindra by buying a 4-5% stake from UK incumbent BT Group, according to local news channel CNBC-TV18.
M&M was not available…
Indian conglomerate Mahindra & Mahindra (M&M) considers raising its interest in Indian IT services and outsourcing business Tech Mahindra by buying a 4-5% stake from UK incumbent BT Group, according to local news channel CNBC-TV18.
M&M was not available for comment before the press deadline.
BT owns approximately 24% of Tech Mahindra. In December 2010, it sold a 5.5% stake in the company to M&M for US$102m, M&M currently holds a 43% stake.
On Monday, it was reported that BT hired Credit Suisse for a sale of its Tech Mahindra stake and that several PE players have been approached, including Advent International. Blackstone is also rumoured to be among the potential bidders.
When contacted on Monday, BT declined to comment on the reports, only saying that “Tech Mahindra is and will continue to be a key strategic supplier to BT. As we have said previously, we may however consider further share sales at some point in the future.”
