British telecoms firm BT is selling about 5 percent of Indian IT service provider Tech Mahindra Ltd for about $100 million, two sources with direct knowledge of the situation said on Wednesday.
BT is selling Tech Mahindra shares in the price band of Rs 735 to Rs 790 each, the sources said, a discount of 5 to 12 percent from its Wednesday closing price of 834.90 rupees.
Tech Mahindra could not immediately be reached to comment,
BT, the second-largest stakeholder in Tech Mahindra, declined to comment on the story. The group has said it may consider selling Tech Mahindra shares in the future if markets proved attractive.
Britain's biggest fixed-line telecoms company, which relied on deep cost cuts to lift its core earnings 2 percent in the first quarter, with a 23 percent stake at end-June according to stock exchange data.
Tech Mahindra, which provides technology services to telecoms companies including BT and AT&T , is majority-owned by Mahindra & Mahindra , India's larger maker of sports utility vehicles and tractors.
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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 Thursday morning, the sources said. They declined to be named as they were not authorised to speak to the media.
Local media had earlier reported that some global private equity firms had shown interest in buying the British company's stake in Tech Mahindra.