* BT exiting Tech Mahindra with 9.1 pct stake sale
* Selling shares at a floor price of 855 rupees
By Sumeet Chatterjee
MUMBAI, Dec 11 BT is selling its 9.1
percent stake in Tech Mahindra in a deal expected to
raise about $183 million and see the British telecoms operator
exit an Indian IT services group it co-founded more than two
The Tech Mahindra shares are being sold at a floor price of
855 rupees ($15.68), according to a term sheet seen by Reuters,
a discount of 2.8 percent from Tuesday's 879.50 rupees closing
price. The stock is up about 53 percent this year.
BT, which set up technology outsourcing services provider
Tech Mahindra with India's Mahindra & Mahindra Ltd in
1986 and was its second largest shareholder in the past, has
been gradually paring its stake in the Indian joint venture.
It sold 14.1 percent of Tech Mahindra stake for about $250
million in August.
Britain's biggest fixed-line telecoms company is also one of
the major clients of Tech Mahindra, which provides technology
services to global telecoms operators, and its exit is likely to
cloud the outlook for future contracts from BT.
JPMorgan and Credit Suisse are advising BT
on the share sale, and the shares will change hands on the
Indian stock exchanges via block deals on Wednesday morning, the
term sheet showed.
BT had to rely on deep cost cuts to maintain its full-year
earnings outlook after an adverse regulatory ruling and weak
European corporate demand sent revenues down 9 percent in the
BT's stake sale in Tech Mahindra adds to a busy week for
equity offerings in Asia's third-largest economy, with more than
$2 billion worth of share deals likely to be closed by Friday,
after a lacklustre first half of the year.
The government's sale of a $1.1 billion stake in miner NMDC
Ltd is set for Wednesday, while leading telecoms tower
operator Bharti Infratel is selling shares to raise up to $830
million in the country's biggest IPO in two years.