Satyam gets SEBI nod to go ahead with 51% stake sale

New Delhi, March 6 (PTI) Satyam Computer Services Ltd,
currently being investigated for the biggest fraud in India's
corporate history, Friday said it has received Securities and
Exchange Board of India (SEBI) approval to sell 51 per cent of
its stake through a global bidding process.

The selected investor will have to acquire the stake by
purchasing 31 per cent equity via a preferential sale of new
shares and subsequently make an open offer for a minimum 20
per cent, Satyam said Friday.

Satyam further said that the investor will make an open
offer for 20 per cent on the closure of the subscription. The
investor will be issued additional equity if it fails to get
51 per cent post the open offer, the management said.

The company will come out with details of the bidding
process shortly, it said.

Meanwhile, the news had a positive impact on the Satyam
stock, which jumped nearly 14 per cent on the NSE and 13.14
per cent on the Bombay Stock Exchange. It was later trading at
Rs 38.50, up 9.69 per cent, on the NSE, and at Rs 39.50, up
12.54 per cent, on the BSE.

While B K Modi of Spice Corp was unavailable for comment,
Hinduja CFO Prabal Banerjee told PTI once the bidding process
details come out, the company will examine the possibility of
bidding.

"This is a positive step ... in the right direction,
giving clarity to the broad contours of the situation,"
Banerjee said.

Tech Mahindra Vice-Chairman and Managing Director
Vineet Nayyar said the firm needs time go through the details
of Satyam's statement.

"The company expects to invite expressions of interest
from qualified investors shortly in a global competitive
bidding process," Satyam said.

Qualified investors are expected to have total net assets
in excess of USD 150 million, it said.

Satyam's Government-appointed board is gearing up to sell
stake in the company to restore investor confidence and check
client defections.

IBM, the global IT major, is reportedly interested in the
company but the IBM spokesperson earlier said the firm does
not comment on speculation. Other prominent players in the
race to acquire Satyam are Larsen & Toubro (L&T), which owns
12 per cent in the Hyderabad-based company, Tech Mahindra,
BK Modi-owned Spice group, and the Hinduja group.

Modi had earlier said that the stock market valuation
could not be the basis for setting a reserve price for the
sale of the troubled IT firm.

Analysts said in the absence of proper financial data
and legal complications, getting the right bidders may be
little difficult but it all depends on the details of the
process laid out by the company.

Satyam's founder Ramalinga Raju said in January that he
inflated assets by over USD 1 billion, which resulted in the
stock plummeting 80 per cent, pushing the company into
uncertainty. PTI ANA
AM