Sanjay Jalona: LTI-Mindtree merger approved by boards of directors, LTI chief executive Sanjay Jalona exits

Bombay: The board of directors of mid-tier IT firm Mindtree and LTI approved a composite plan to merge both independently listed companies at their respective meetings held on Friday. The companies will be hosted under the Larsen & Toubro Group with combined revenues of $ 3.5 billion.

As soon as the scheme goes into effect, LTI shares will be issued to all Mindtree shareholders at the ratio of 73 LTI shares for every 100 Mindtree shares. The newly issued LTI shares will be traded on NSE and BSE. Larsen & Toubro will own 68.73% of LTI after the merger. The merger will be completed in the next 9-12 months subject to regulatory approval.

The transaction is subject to the approval of shareholders and authorities. Mindtree, with a market cap of Rs 55,627 crore, will merge into LTI with a market cap of Rs 80,518 crore, following the close of markets on Friday.

In announcing the definitive merger, AM NaikGroup president, L&T said the Larsen group engineering services firm and Toubro Technology Services will not be merged into the same entity as the group wants the company’s knowledge focus not to be diluted.

Following this merger, Debashi’s Chatterjeecurrently CEO and MD of Mindtree, he will lead the combined entity, as reported by ET last week. Sanjay Jalona decided to move forward for personal reasons, Naik said.

For now, LTI and Mindtree will continue to operate independently. A Steering Committee will be established to oversee the transition until the merger process is complete. The combined entity name will be “LTIMindtree”, leveraging the benefits of both brands and creating value for all stakeholders. The company will announce the committee’s details in due course, Naik said.

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