Information Technology

VG Siddhartha in talks with firms to sell his stake in Mindtree: report

Updated : January 21, 2019 12:14 PM IST

Coffee Day founder VG Siddhartha is ready to sell his 21 percent stake in Mindtree and is in talks with L&T Infotech, KKR, Baring Private Equity Partners Asia and Prem Watsa’s Fairfax for the takeover, The Times of India reported, citing sources.

The takeover process is expected to conclude with one of the companies listed above in the next 10 days, sources told the paper.

The acquirers have signaled a lower price if the founders are not part of the deal and the management control doesn’t come along. “If it delivers management rights, the offer price would be significantly higher. It would slightly lag prevailing price otherwise,” sources told the paper.

The company has four founders —Subroto Bagchi, NS Parthasarathy, Krishnakumar Natarajan and CEO Rostow Ravanan. They own 13 percent in total. The paper said that the founders rejected plans to sell or merge Mindtree to buyout funds or rival IT companies.

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