British Telecom exits Tech Mahindra, sells 9.1% stake for Rs 1,011 cr
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British telecom giant BT has offloaded 9.1 per cent stake in Tech Mahindra for Rs 1,011.4 crore, marking its exit from the Indian IT services firm.
"BT (British Telecom) has completed the sale of its remaining 9.1 per cent shareholding (11.6 million shares) in Tech Mahindra to institutional investors for total gross cash proceeds of Rs 1,011.4 crore (GBP 115.7 million) at Rs 871 per share," BT said in a statement today.
Reacting to the announcement, Tech Mahindra shares jumped 3.68 per cent to Rs 910.70 on the BSE in afternoon trade.
Stating that Tech Mahindra remains a key supplier to BT, the British firm said the financial impact of the disposal is expected to be treated as an income statement specific item in its next financial results.
BT had set up the technology outsourcing firm in joint venture with Mahindra & Mahindra in 1986. The British company had around 30 per cent stake in Tech Mahindra initially.
In August 2012, BT sold 14.1 per cent stake in Tech Mahindra to institutional investors for about Rs 1,395 crore. Following this sale, the British company, which had 9.1 per cent shareholding in Tech Mahindra that time, had said that it might consider further sales in future.
In 2010, BT Group had sold 5.5 per cent stake in Tech Mahindra to Mahindra and Mahindra (M&M).
BT is one of the world's leading providers of communications services and solutions, serving customers in more than 170 countries.
BT offers networked IT services, telecommunications services, broadband and internet products and services as well as converged fixed/mobile products and services.
In the year ended 31 March 2012, BT Group's revenue was 18.8 billion pound with profit before taxation of 2.4 billion pound.