Cafe Coffee Day's Siddhartha may buy Ashok Soota's stake for Rs 270 crore, become MindTree's largest shareholder
Wednesday, 25th May 2011
In a move to back the company he seed-funded more than a decade ago, Cafe Coffee Day Group owner V G Siddhartha, is expected to buy the 11.1 per cent stake in MindTree held by Ashok Soota for Rs 270 crore. The move will enable Siddhartha to become the single largest shareholder in MindTree.
Soota, the co-founder of Mindtree, had recently quit to start a new venture Happiest Minds Technologies. According to industry insiders, Siddhartha may be paying a premium of nearly a Rs 100 crore for Soota's stake based on the current market capitalisation of MindTree, which is a little over Rs 1,400 crore.
Siddhartha is expected to buy Soota�s stake through his venture capital arm Global Technology Ventures � the same subsidiary through which he along with other venture capital funds helped form MindTree during 1999.
Publication : Business Standard
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