The UK’s largest telecom company, British telecom (BT), may be considering an exit from Tech Mahindra and further may sell out all or part of its 31% stake in the telecom software services company.

Though, it is not confirmed whether any transaction is about to happen, a relevant industrial official who knows a lot about the recent development informed that its not the right time to talk about BT’s exit. The official clarified, “BT has not approached Mahindra and Mahindra (M&M) and there is no indication of a formal process. All one can say is that they could be contemplating selling at some stage.”

He further informed that till now it is not sure if M&M would implement its right of refusal (RoFR). Further it is also being thought that if in case a transaction takes place then private equity investors may buy part or BTs’ entire stake. The present state of the bearish market may further discourage any immediate sale plans.

However, when both the companies were asked about this recent development, they refused to comment anything, though a spokesperson from BT did report, “BT does not comment on rumors and speculations. BT has operations and investments worldwide, which we regularly review. India remains a critical market for both BT and our customers, and we expect to continue developing the operational network and service presence which we have established over a number of years.”

Ulhas Yargop, M&M president-IT sector, informed that this all is just the assumption of people and they won’t like to comment on it as of now.

But on the other hand, the official, who reported about BTs’ exit, also added that this will actually help Tech Mahindra to grab more deals in the telecom sector. Further the company will get to have more clients and a better network.

Presently, BT contributes over 60% business for Tech Mahindra, and the company saw a lot of profit pouring in recently when it got a deal worth over $700 million from BT.