Tech Mahindra sells 8.07% stake to AT&T for $34.5 mn

NEW DELHI: Mahindra BT Investment Co has sold its entire 8.07 stake in IT company Tech Mahindra to US-based communications firm AT&T for USD 34.5 million.

"AT&T has picked up the stake from one of the promoters, Mahindra BT Investment Co, for USD 34.5 million. This is as per an agreement between AT&T and the promoter company in May 2005 before the IPO. AT &T has exercised the option to acquire the share," a Tech Mahindra spokesperson said.

In a communication to the Bombay Stock Exchange, Tech Mahindra said AT&T International Inc picked up 9.8 million equity in the firm resulting in 8.07 per cent stake in the firm.

Shares of Tech Mahindra closed at Rs 910.20, down 0.18 per cent at the BSE.



Tech Mahindra, which employs 30,000 people, is a leading provider of solutions and services to the telecommunications industry. It is majority owned by Mahindra & Mahindra Ltd, in partnership with British Telecommunications Plc.

As on December 31, 2009, Mahindra and Mahindra, Indian utility vehicle and tractor maker has 44 per cent stake in the Tech Mahindra, while UK's telecommunications company BT has 38 per cent stake.

Officials at AT&T were not immediately available for a comment.

BT Group owns 31 percent in Tech Mahindra and is also the largest customer, accounting for about 40 per cent of its revenue.