M&M to buy 5.5% of Tech Mahindra's stake from BT

Auto giant Mahindra & Mahindra on Friday said it has agreed to acquire 5.5 per cent of IT firm Tech Mahindra's stake from UK-based British Telecommunications Plc (BT). UKs largest fixed-line phone company BT holds 30 per cent stake in Tech Mahindra.

"Pursuant to a proposal received from BT, the company has agreed to acquire 5.5 per cent of the equity shares of Tech Mahindra from BT over time through an inter-se transfer among qualifying promoters at a market related price, in accordance with the SEBI regulations," M&M said in a filing to the Bombay Stock Exchange.

Financial details of the deal were not disclosed. M&M will also waiver rights to buy BTs remaining stake in the software services provider, and the agreement will automatically terminate if BTs stake in Tech Mahindra falls below 10 per cent, the filing said.

The company has also agreed to consider further proposals from BT in this regard, it added. Meanwhile, M&M share was trading at Rs 759.80, down by 2.75 per cent from its previous close on the BSE.