Mahindra will buy the stake “over time” from the U.K.’s largest fixed-line phone company, according to a statement to the Bombay Stock Exchange today. The shares will be purchased at a market-related price in accordance with Indian rules, the Mumbai-based company said.
BT Chief Executive Officer Ian Livingston said in May the company was reviewing options for its 30 percent stake in the Indian software-services provider. The London-based company pared its holding in the venture following a share sale in 2006.
Tech Mahindra fell 2.5 percent to 608.05 rupees as of 10:54 a.m. in Mumbai trading. The stock has slumped 39 percent this year, while the benchmark Sensex index has climbed 9.1 percent. Mahindra shares declined 2.3 percent to 763 rupees.
Mahindra has a 43 percent stake in Tech Mahindra, according to Bloomberg data. The Pune, India-based company last year acquired control of Satyam Computer Services Ltd., the software developer embroiled in India’s biggest corporate fraud probe.
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